HONG KONG — Motion upholstery powerhouse Man Wah Holdings said worldwide sales rose 7.4% in the six months ended Sept. 30, but sales in the U.S. - its largest market - slipped 8.1%.

It marked the first U.S. sales decline after several years or torrid growth, but the company's top line was still far ahead of the same period in 2009.

In a filing with the Hong Kong Stock Exchange, Man Wah said U.S. sales were the equivalent of $139.8 million in the most recent six-month period. That's down from $152.2 million in the six months ended Sept. 30, 2010, but well ahead of the $83 million recorded in the six months ended Sept. 30, 2009.

The company, which sells its products under the Cheers brand name, said it expects the U.S. market to recover gradually, but said the economy is still being held back by a weak housing market.

The decline in U.S. sales was more than offset by a 48.5% increase in sales in Canada, and a 43% jump in sales in mainland China, its second-largest market.

The company has more than 300 Cheers retail stores in China.

Worldwide sales for the six months ended Sept. 30 totaled 2.13 billion Hong Kong dollars, or about $273 million. That compares with 1.98 billion Hong Kong dollars, or about $254.2 million, in the same period in 2010.

Profits for the most recent six months, however, tumbled more than 50% due to significant increases in the cost of leather and other raw materials.

Man Wah had net income of 185.7 million Hong Kong dollars, or about $23.8 million, in the six months ended Sept. 30. That's down from 382.5 million Hong Kong dollars, or about $49.1 million, in the same period in 2010.

The company said its raw materials costs were 26.3% above the same period in 2010, while labor costs were 16.1% higher.