Shares in Dunelm jumped more than 12% on Monday as it indicated a positive outlook for the financial year despite ongoing uncertainty around Brexit.
Sales improved in the second quarter as the homeware company refocused on its core business.
Like-for-like sales at the retailer were 9% higher in the 13 weeks to December 29.
The company said total growth at group level was 2%, reflecting the closure of the under-performing Worldstores and Kiddicare websites.
Comparable sales in store were up 5.7% compared with the same period last year.
Dunelm said initial results from its new marketing campaign have been encouraging, while a new website is set to be launched this year.
Current expectations for full-year profits are slightly ahead of market expectations.
However the group remains cautious due to what it called the “unprecedented level of uncertainty currently facing consumers and businesses in the UK”.
Chief executive Nick Wilkinson said the improved performance was down to a fresh focus on the core business.
“The positive like-for-like revenue growth, both in stores and online, highlights the strength of our customer offer.
“Our multichannel proposition is improving all the time, and we are looking forward to introducing our new web platform in the summer, using more flexible technology which will allow us to better serve our customers in a changing retail landscape.”
