Michael Hill has started an internal strategic review for its New Zealand business after another sales dip in the segment during the first half.

The group’s net profit increased 9.5 per cent to $16.9 million despite revenue decreasing 0.7 per cent to $360.2 million. However, revenue from its New Zealand business fell 7.4 per cent to NZ$60.5 million ($54.6 million).

The company achieved record sales performance in Canada, where revenue climbed 2.4 per cent to C$90.7 million ($100.3 million), while Australian sales inched up 1.2 per cent to $204.7 million.

“An internal strategic review of our New Zealand segment is underway as we navigate the cyclical downturn in the economy, leverage the brand’s heritage and re-establish the profitability of this segment,” said the company.

Michael Hill ended the period with 294 stores across all its markets.

For the first seven weeks of the second half, Michael Hill saw its sales rise 1.7 per cent from the year-ago period.

Its Canadian and Australian segments’ sales jumped 6.7 per cent and 3.8 per cent, respectively, while New Zealand sales fell 1.9 per cent.