In its sales market report for six-months trading to December, chairman Michael Hill said improved trading conditions for same store sales during the key Christmas period were boosted from a "flat" first quarter to 4.4% up for the second quarter.
"All countries performed well and improved their same store trading performance from the first quarter," Mr Hill said in a statement.
Investors reacted favourably after the announcement, pushing the share price up 4.5% to trade around 69c.
Same store sales, were up 4.4% on the period last year, while "all store" sales across New Zealand, Australia, Canada and the United States were up 7.9% in total, from $226.4 million for the six months to December last year to $244.2 million.
Craigs Investment Partners broker Chris Timms said Mr Hill was extremely cautious in setting up new ventures and "worked to a strict business model", carefully assessing the results of new shops set up to "test the waters" in new areas.
While same store sales in Canada were down 12.6%, from $18.5 million to $16.2 million, Mr Timms said that at only 8% of all sales their impact was "relatively insignificant", noting the Canadian all store sales were up 7% from $6.9 million to $7.4 million.
MHI sales had done well, especially when compared to New Zealand bellwether retailer The Warehouse, which earlier this week reported unexpected "flat" sales during Christmas.
Last financial year, MHI posted a total operating revenue of $412 million.
Mr Timms said based on the overall same store growth of 4.4% and all store growth of 7.9% for the first half this financial year, MHI "was likely to finish up with 8% to 10% sales growth" for the full-year result.
"The more stores they have . . . the bigger the margin they can maintain," Mr Timms said.
Mr Hill said retail conditions in the United States were "still difficult", but the company had seen some "encouraging trends" emerging during the second quarter.
On Thursday, a 3% tranche of 11.7 million shares at 63.5c shares MHI sold for $7.5 million.
There has been no disclosure of the seller or buyer.
MHI's full half-year report is due out on February 18.
