But same-store sales across the Tasman fell 1.5 per cent during the half-year, compared with a 5.7 per cent increase in the prior corresponding period, the company said.
Paul Harrison, head of equities at BT Asset Management, said Australia had been a "big profit engine" for Michael Hill, which meant the downturn in consumer spending across the Tasman was a potential concern.
Data released yesterday showing Australian unemployment had fallen to its lowest level in six months could have an adverse impact on consumer spending, as it lowered the chances of interest rate cuts for Aussie homeowners, he said. "But on the other side, if there's more jobs being created people feel better about things and possibly spend money on jewellery."
The company said total half-year operating revenue rose 7.3 per cent to $288.8 million.
Net profit lifted 11.5 per cent to $26.3 million, beating brokerage Forsyth Barr's forecast of $25.7 million.
In its New Zealand stores, half-year sales rose 8.5 per cent to $60.9 million, the company said, while revenue in its Canadian stores increased by 20.9 per cent to C$24.2 million ($29.2 million).
Parsell said the company felt as if retail conditions in the United States had "bottomed out" and were beginning to improve.
The firm reported half-year revenue of US$5.3 million ($6.4 million) for its US stores, with an operating loss of US$1.43 million - better than the US$2.1 million loss in the same period a year earlier.
Parsell said Michael Hill operated most of its US stores in the Chicago area and would consider expanding the business into other parts of the United States.
He said the Australian market continued to be difficult early in the second half, but other markets were trading "quite well".
Michael Hill shares closed up 2c at 89c last night.
