Listed jeweller Michael Hill International has made a strong start to the year with first-quarter sales up 9.2% for Michael Hill stores.
Forsyth Barr broker Suzanne Kinnaird said the result was underpinned by same-store sales growth of 5.7%.
MHI also indicated gross margins were flat compared with the previous year, despite the material depreciation of the Australian dollar against the US dollar.
The sales release provided first time sales data for Emma & Roe, with early signs from the new brand encouraging, she said.
MHI sales rose to $A112.5million ($NZ122.4million) in the three months ended September 30, from $A100.9 million a year earlier, the Brisbane-based company said in a statement. Same-store sales gained 6% to $A107million.
The retailer reported weaker earnings in Australia, its largest market, in the year ended June 30, and cut its dividend for the first time in six years.
At the same time, it flagged plans to open eight more stores across the Tasman by 2018.
Gross margins had been under pressure from a strong US dollar but it had taken appropriate action and margins should be steady in the latest three months compared with a year earlier, it said, without giving details.
Ms Kinnaird said MHI made a positive start in its core market of Australia, with same-store sales up 2.9%.
That followed a disappointing 2015, particularly in the fourth quarter when MHI changed its advertising focus.
In New Zealand, same-store sales were up 8.6%.
''This turnaround in its oldest market continues to deliver benefits and we expect a shift in advertising back to a product focus also helped to drive a lift in sales.''
The strong New Zealand first-quarter sales were ahead of forecasts, she said.
Canadian same-store sales growth of 6% was ahead of the same period last year and 3% ahead of Forsyth Barr's expectations, Ms Kinnaird said.
It was still early days in the United States. Sales results could be volatile given the small store base.
However, same-store sales growth of 1% was weak and below expectations.
Michael Hill also separately disclosed revenue for its charm bracelets and accessories chain, Emma & Roe, which is in the second year of a trial.
The division doubled sales to $A1.57million, an uplift of 45% on a same-store basis.
It opened one new Emma & Roe store in the quarter, bringing the total to nine, and planned to open two more.
''This will take the brand to critical mass in the southeast Queensland market and give us the best indication of its commercial viability,'' the company said.
Michael Hill shares last traded at $1.04 and have dropped 20% in the past 12 months.
Ms Kinnaird said the company had made a positive start to the year with Australia, New Zealand and Canada all tracking ahead of expectations.
