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Think Australian retail is struggling? Michael Hill International disagrees.

The jewellery retailer has increased first half profit by 5.1% to $24.9 million.

This is a rise from $23.7 million in the same period last year.

Revenue increased 9.7% to $310.8 million, bolstered by a growth in earnings in Australia.

Its 166 Australian stores posted a 4.2% growth in revenue, while same store sales grew 3.4%.

While US operations were affected by store changes, New Zealand and Canada also boosted margins.

Michael Hill International chief Mike Parsell said this was a positive result for the jewellery retailer.

"It was particularly pleasing to see both revenue and [earnings] growth come from our largest market, Australia, given the continuing lack in consumer confidence in many parts of the country."

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