Listed jeweller Michael Hill reported an improved profit for the year ended June but provided no outlook commentary or guidance in its release to the NZX and ASX.
The company's operating profit rose 5.2% to $A372.8million ($NZ403.9million) in the period, from $A354.4million.
Earnings before interest and tax were up 2.3% to $68.1million and the reported profit was up a whopping 71% to $A32.6million.
Revenue was up 6% to $A584.6million.
Michael Hill's main listing is now in Australia and the company reports its results in
Australian dollars.
Forsyth Barr broker Lyn Howe said strong growth in Canada led the profit rise for the company.
The Emma & Roe losses were much higher than the previous year, taking the shine off headline growth rates.
Looking at the divisions, the Michael Hill ebit of $A86.8million was up 6.2%, led by the strong growth in Canada and solid growth in Australasia, which outweighed increased losses in the United States.
``The result was modestly below our expectations as operating leverage in Canada and New Zealand was slightly weaker than anticipated.''
The $A6.9million loss for Emma & Roe was much higher than the previous year and ahead of Forsyth Barr expectations, Ms Howe said.
It was early days for the new brand but further work was required to prove up the model in the short-term.
Corporate costs of $A31.7million were modestly lower than the previous year and below the broker's expectations.
Near-term store roll-out plans had been tweaked in Australia and New Zealand but were lower in Canada and the US for the Michael Hill brand, Ms Howe said.
The latter was not surprising, and Forsyth viewed it as a positive, given the US remained loss-making.
The Canada slowdown was disappointing but could reflect the timing of real estate availability.
Emma & Roe plans were also slower, reflecting a focus on getting the model and existing store base performing better in the short term, she said.
``We see modest down-side risk in our near-term forecasts. Michael Hill's core store portfolio and brand is in good shape and still offers attractive growth.
``However, new initiatives are constraining reported growth rates and more work is required to build confidence in the model.''
It appeared the market was attributing little value to Emma & Roe, Ms Howe said.
Forsyth Barr had a current rating of outperform on the company and a target price of $1.55. The shares lasted traded at $1.31, down 2c.
