Michael Hill International's half-year earnings have tumbled by a third as consumers spend less on jewellery
The listed firm made operating earnings of $21.3 million in the six months to December, a drop of 31% on the same period a year earlier.
Like other retailers, Michael Hill has suffered as consumers curtail their spending as the global recession deepens.
Sales at its New Zealand stores open for at least a year fell by over 9%, and almost 11% in Canada.
The jeweller says trading conditions in both countries have been difficult and it's focusing on controlling costs to limit the impact of falling sales.
Michael Hill also booked an operating loss of $1.4 million on its US operations, where it recently acquired 17 stores from a bankrupt jeweller.
The one bright spot has been Australia, where sales inched up 1%.
Overall, Michael Hill's half year profit more than tripled to $65.6 million, but that's been inflated by a one-off tax benefit of about $53 million from transferring intellectual property from New Zealand to Australia.
Looking ahead, the company says until there are signs of recovery in the global economy, it will scale back its expansion plans, though it's confident the group will remain profitable.
