Michael Hill International shares jumped as much as 7 per cent after the jewellery chain posted a 46 per cent rise in first-half profit.
The company's stock advanced 8 cents to a two-month high of $1.23 and recently traded at $1.19. Brisbane-based Michael Hill said profit rose to A$23.7 million in the six months ended Dec. 31, from A$16.2 million in the year earlier period. Revenue increased 4.6 per cent to A$283.2 million.
Michael Hill's Australian unit, which accounts for about 60 per cent of revenue, posted an 8.6 per cent increase in earnings to A$31.5 million even as sales at its 166 stores dropped 1.9 per cent to A$168.5 million. Australia's economic growth has slowed as prices for the country's commodity exports, such as iron ore, have dropped, weighing on consumer confidence.
"I was very impressed with the improved result from the Australian segments of the company," said Grant Williamson, a director of Hamilton Hindin Greene. "Retail in Australia is pretty depressed at the moment but Michael Hill have done extremely well."
Retailers have had mixed results over the period. Shares in outdoor clothing and equipment retailer Kathmandu Holdings slumped earlier this month after the company said it expected to post a first-half loss following poor trading, while Warehouse Group said its first-half profit would probably decline about 20 per cent on weaker-than-expected sales. Meantime clothing retailer Hallenstein Glasson said its first half earnings would probably rise by a third.