Wellington, Oct 10 NZPA - It is a mixed picture in the jewellery business at the moment, with Michael Hill International Ltd reporting an overall rise in same store sales in New Zealand dollar terms in the three months to September 30.

But the Australia stores that traded well for the quarter started to feel the pressure of global conditions during September and New Zealand was down.

The company's 17 US stores traded for 28 days of September and the board said it was satisfied with their results given the fact they were trading under Chapter 11 prior to acquisition.

"This market will take quite some time to turn around but the board is confident this investment will position the company well for the future."

When translated to New Zealand dollars same store sales in Australia rose 11.6 percent in the three months from a year ago, while New Zealand store sales fell 6.7 percent. Canadian store sales fell 7.1 percent.

In local currency terms Australian sales rose 2.3 percent, Canadian sales fell 11.6 percent.

"New Zealand struggled for much of the quarter and we aren't expecting this to improve materially during the balance of the financial year due to the economic climate we are operating in. The volatility of currencies has been a challenge for the company," the board said.

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