Australian Retailers Association boss Paul Zahra said the numbers were “a testament to the resilience of the retail industry and set a good foundation as we anticipate a period of uncertainty in 2023, with inflationary pressures and the rising cost-of-living.”

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Analysts had flagged that a strong Christmas trading season would flow through to better-than-expected half-year results from a range of retailers, but there are still expectations that spending will slow down in coming months.

“Looking forward, rising cost-of-living pressures are expected to weigh on retail sales, although a significant decline will require a marked deterioration in the labour market and/or an exhaustion of surplus savings, while performance is expected to vary by category,” UBS retail analysts said in a note to clients this week.

Michael Hill shares are up 5.5 per cent year-to-date, but traded flat throughout the first hours of Thursday’s session, sitting at $1.16 just after 1:30pm.