Michael Hill International (ASX:MHJ, NZE:MHJ) reported fiscal first-half group sales of AU$370.3 million, compared with AU$359.1 million a year earlier, helped by record sales in Canada, according to a Tuesday Australian and New Zealand bourse filing.

The company expects earnings before interest and tax for the 26 weeks ended Dec. 28, 2025, of AU$27 million to AU$30 million, compared with AU$24.1 million in the first half of fiscal 2025.

Group gross margin is expected to be broadly flat at over 61%, as record-high gold, silver, and other metal input costs were offset by enhanced overall product mix and focused promotional activity, the filing added.

The company added that group inventory levels are expected to be about AU$11 million lower than last year at AU$203 million as part of a deliberate plan to improve working capital efficiency.

The company's Australian shares rose almost 14% in recent Tuesday trade, while its New Zealand shares climbed 16%.