British department store chain House of Fraser met forecasts with a 4.6 per cent rise in annual profit and said current trading was ahead of original expectations.
House of Fraser said like-for-like sales had turned positive in the latest four week-period as Mothers Day sales kicked in.
"We previously expected trading during the first half of 2006 to be difficult. We are pleased that the first seven weeks have been ahead of our original expectations," chief executive John Coleman said.
Mr Coleman also told reporters that while like-for-like sales were down 1.3 per cent on the year in its first seven weeks, the underlying figure was closer to zero.
"Bear in mind that this (1.3 per cent fall) does not include the effect of Mothers Day which this year falls this Sunday, and was three weeks ago last year. Mothers Day generally has about a 1 per cent impact on our sales," he said.
House of Fraser made a profit before tax and exceptional items of £27.3 million (€39.5 million) in the 52 weeks to January 28th on sales up 11 per cent to £1.01 million.
House of Fraser shares, which have underperformed other general retailers by 8 per cent over the past 12 months, were up 2.8 per cent at 118 pence this morning to value the business at £278 million (€402 million)