Michael Hill jewellers says same-store sales surged 11.9 per cent in the September quarter, compared to the prior year, even as the retail environment "remains volatile and challenging".
Australian same-store sales were up 6.8 per cent for the quarter, while Canadian sales rose 16.4 per cent and New Zealand sales were up 10.1 per cent, Michael Hill said on Friday.
"The Australian market continues to be challenging as with widespread discounting in the sector as competitors fight to maintain market share," the jeweller said.
Three underperforming Australian stores were closed, giving the jeweller 165 Australian stores.
A new retail operating model was started in August with the launch of a celebration of the 40th birthday of the brand, which lifted sales for the month.
"These first quarter results are a strong foundation as we enter the all-important Christmas trading period," Michael Hill International chief executive Daniel Bracken said.
At 1051 AEST Michael Hill shares were up 15.8 per cent to a six-month high of 66 cents.