Operating revenue was up 4.6% to $A283.2 million ($NZ295.3 million) in the six months ended December 31. The company now reports its financials in Australian dollars.
Operating earnings were up 17.6% to $A35 million and the reported profit was up nearly 46% to $28.8 million, helped by paying much less tax in the current half year.
The company also added in other comprehensive income after the tax-paid profit to lift the profit attributable to shareholders to $A28.8 million from $A23.6 million in the previous corresponding period.
The other comprehensive income included a gain of $A5.7 million on currency translation differences and an unspecified gain of $A5.1 million.
That took earnings per share (eps) to A6.2c from A4.2c in the pcp.
Forsyth Barr broker Peter Young said the operating profit was ahead of his expectations with the divisional results in Australia and Canada the key ''take out'' from the first-half.
In Australia, the company had reported a strong result against a tough trading backdrop which reflected a focus on costs.
In New Zealand, a combination of solid same-store sales growth and margin expansion continued the turnaround in the local business.
A strong result in Canada reflected operating leverage to sales growth.
''This division appears to have reached the tipping point with critical store mass, so we see positive earnings momentum and strong growth.''
The United States division was a small part of the overall group, but it was still weaker than expected, Mr Young said.
The Emma & Roe brand was being tested with seven stores open in Australia and one store now open in New Zealand.
Early signs were encouraging and the sales result was ahead of expectations, he said.
Michael Hill International remained in discussion about tax issues with the Inland Revenue Department within the dispute process.
The company said it was increasingly likely the matter would require formal resolution though the courts.
Tax deductions at risk in the dispute totalled about $NZ36 million - from 2009 to 2014 - and the company would also be required to pay use of money interest.
No provision had been made in the financial statements, although the company had already entered into a tax pooling arrangement to mitigate the interest risk of an unfavourable outcome, Mr Young said.
The current brand campaign, which included an advertisement during the Super Bowl, would weigh on the second-half results, Mr Young said.
No details were provided but the costs were expected to be material.
Forsyth Barr would follow up for more detail with the company to understand the expected return on investment.
The broker had an outperform rating on Michael Hill International, reflecting a positive view on its growth outlook.
