Jewellery chain Michael Hill International has lifted first half sales 3.9 per cent as growth in its target North American market offset a weak Australian trading environment.

Sales across all stores rose to $A279.3 million ($NZ290 million) in the six months ended December 31 from $A268.9 million, and were up 0.8 per cent on a same store basis, the Brisbane-based, NZX-listed company said on Friday.

That growth was led by a 24 per cent lift in its United States segment to $A6.8 million and a 16 per cent gain in Canadian sales to $A45.9 million, where the retailer has been seeking to gain traction as the North American economy climbs out of the rut caused by the global financial crisis.

On a local currency basis, Michael Hill’s Canadian stores lifted sales 19 per cent across all stores and 4.4 per cent on a same store basis, while US sales grew 18 per cent and 9.1 per cent.

The Canadian segment “continued to experience solid growth” and the US “achieved strong growth,” the retailer said.

“However, Australia continued to be a difficult market.”

Michael Hill’s Canadian store footprint surpassed New Zealand’s last year and is on track to reach 100 outlets in coming years, and the retailer is focusing on the top 100 malls in the US as part of its North American growth plan.

The chain added eight stores in the period while closing one, and had 285 outlets as at December 31.

Its Australian unit continued to lag, reporting a 0.7 per cent decline in sales across all stores to $A168.6 million, and was down 2.1 per cent on a same store basis as Australia’s economy hits a lull.

The New Zealand unit lifted sales seven per cent to $A58 million in the half across all stores, and 7.4 per cent on a same store basis. In New Zealand dollars, sales rose 3.8 per cent across all stores and 4.1 per cent on a same store basis.

The shares last traded at $1.15, and sank 16 per cent in 2014.

BusinessDesk