Michael Hill International has confirmed it will reduce its brand portfolio to two core banners, with plans to wind down Medley and integrate TenSevenSeven and Watches Galore into its existing Michael Hill and Bevilles operations by the end of FY26.
The announcement was made as part of an investor briefing, outlining a strategy to simplify the group’s structure and concentrate on defined price segments across its global store network.
Portfolio Simplification Strategy
The group will exit three standalone concepts as part of the restructure. Medley, positioned in the demi-fine and fine jewellery segment with an emphasis on responsible sourcing, will be closed, with customer migration plans to follow.
TenSevenSeven, a higher-end concept focused on bespoke jewellery, and Watches Galore, an online-only watch retailer, will not continue as independent brands. Instead, their capabilities and product offers will be absorbed into Michael Hill and Bevilles.
Watches Galore has operated as a digital-led business supported by Bevilles’ watch inventory. Under the new structure, this activity will be consolidated within Bevilles’ platform.
Following the changes, the group will operate under the Michael Hill brand in the mid-to-upper price segment and Bevilles in the lower price category.
Store Network and Market Overlap
Michael Hill International currently operates a combined 282 stores across its two remaining brands. This includes 122 Michael Hill stores in Australia, 81 in Canada and 43 in New Zealand, alongside 36 Bevilles locations in Australia.
The company noted that approximately 14 per cent of its global store network is located in areas where both Michael Hill and Bevilles serve overlapping customer catchments. In Australia, this overlap increases to around 30 per cent.
Insights from TenSevenSeven and Bespoke Demand
The integration of TenSevenSeven follows insights gained from its performance in the bespoke jewellery segment. The concept indicated demand for customised engagement rings, with average transaction values reported at more than four times those of Michael Hill’s standard bridal offering.
In response, the group has begun trialling in-store bespoke ring design services across selected locations, with plans to expand the offering across its network.
Bevilles Repositioning and Operational Changes
Since its acquisition in April 2023, Bevilles has undergone operational changes including the relocation of its head office and distribution centre closer to Michael Hill’s Australian headquarters in Queensland. The brand has also expanded its product assortment.
Further adjustments are planned through to December 2026, including leadership changes, a revised product mix and updates to its customer value proposition.
The group indicated that these measures are intended to stabilise performance within the lower price segment.
Financial Performance and Trading Conditions
Michael Hill reported a 5.5 per cent increase in same store sales for its Australian segment in the third quarter of FY26. For the first half of the financial year, Australian retail sales rose 2.1 per cent to $209.1 million, with same store sales up 4.8 per cent.
In FY25, the group recorded Australian retail revenue growth of 1.4 per cent to $364.1 million, alongside a same store sales increase of 1.2 per cent. Gross margin for the period was 59.7 per cent, down from 60.4 per cent in the previous year.
The FY25 results also included a $7.4 million impairment relating to the Bevilles brand intangible asset. During that period, Bevilles expanded to 37 stores, including entry into Queensland with seven new locations.
However, trading conditions were reported to have affected performance, particularly in Victoria, where the brand has the majority of its stores. As a result, further store expansion was paused while the business model is refined. In FY26, Bevilles reduced its footprint to 36 stores following the closure of its Charlestown location in New South Wales.
