UPDATE 1-Steinhoff H1 profit dips, cautious on outlook

* Headline EPS down 2 pct

* Results hit by strong rand

* Says strong rand may hit future earnings

(Adds details, shares)

JOHANNESBURG, March 2 (Reuters) - South African furniture supplier Steinhoff (SHFJ.J) posted a modest decline in first-half profit partly due to unfavourable swings in currencies and lower consumer spending.

Steinhoff, which operates in Africa, Europe and the Pacific Rim, said on Tuesday headline earnings per share (EPS) fell to 115.1 cents in the six months to end-December.

The company said the decline in headline EPS -- South Africa's main profit measure that strips out certain one-off, non-trading and financial items -- was the result of translating euro profits to the rand.

Steinhoff said future profits could be affected by the stronger rand, which strengthened by about 30 percent last year.

"Rand strength will impact the group's full year rand reported earnings if the growth in euro profits does not outperform," Steinhoff said.

In its South African market, retailers have been struggling to keep profits rising as consumers who are fearing high levels of debt and unemployment have put off purchases of big-ticket items such as furniture.

Shares in the company were up 1.61 percent at 19.51 rand by 1312 GMT, slightly outpacing a 0.64 percent gain in the broader JSE's All-share index .JALSH. (Reporting by Tiisetso Motsoeneng)