Sad news from Michael Hill (ASX:MHJ) on Wednesday – its CEO, Daniel Bracken, reportedly passed away overnight due to complications surrounding an existing health issue.

According to the company, Bracken experienced an adverse reaction to another kind of treatment, triggering the unfortunate event.

The market sold the news with shares falling 4.3% in afternoon trades, to 45cps.

In a brief release issued by the company on Wednesday, the jewellery chain company thanked Bracken for seven years of dedication and remarked that under his direction the company was transformed.

Interim leadership announcements from the board will be forthcoming in the coming days and weeks.

It’s likely unwelcome news for MHJ shareholders – 1Y returns are down -40%, though at least one broker rates the stock a buy with two suggesting clients hold, according to a third-party service that ports Morningstar data.

In its latest earnings report, Michael Hill reflected flattish revenue of $360M down -0.7% vs pcp and an improved group margin of up to 61.3%. Net profits climbed by around $1M vs pcp to $17M.

The company noted “management have deployed targeted initiatives to deliver $5M of cost reductions in the second half” in its report, and that’s likely to be the focus of shareholders moving forward – under whose direction those strategic targets will now eventually take shape.

Part of the perhaps underwhelming earnings growth is due to the fact the recession in New Zealand appears to be hitting the stock’s books with NZ same-store sales basis performance down nearly -8% vs 1HFY24.

On the macro scale, online sales clocked $30M in the first half of 1HFY25.

MHJ last traded at 44.5cps.

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