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Jewellery retailer Michael Hill International said it expected to increase first half profit by up to 30 per cent, boosting its shares by nearly 13 per cent yesterday.
The company said it expected a net profit of between $19.25 million to $20 million for the December half year, compared with $15.3 million the year before.
It said sales from both new and existing stores were strong and accounted for the higher profit. Cost reductions had also helped, and the company had improved its supply chain in recent years.
The jewellery retailer opened 15 stores last year, and operates in New Zealand, Australia and Canada.
"It's the normal story - if you've got more stores, then your fixed costs are much lower. As long as they can get the distribution efficient, it's all good," said Stephen Wright of ASB Securities.
The company will report its profit on February 22.
MHI shares closed up 13c and have risen to $1.15 from 67 cents in January last year.
- NZPA
