Briscoes Group is expecting a record half year result of at least $14.6 million due to a lift in sales, but it says the market remains volatile.
Second quarter sales to the end of July rose to $108.8 million, an increase of almost 6.5% compared with the same time last year.
The company, which owns Briscoes homeware, Rebel Sports and Living and Giving chains, says sales in stores open a year or more have risen 3.7%.
For the half year, sales rose more than 6% to $217 million.
Managing director Rod Duke says margins have improved and he's now confident the retailer can raise its after tax profit for the first six months by 10%.
He says the group's performance for the second quarter is pleasing after a late start to winter category sales.
Mr Duke says the result was achieved after making big price reductions and taking market share and he is cautiously optimistic about the next six months.
Shares in Briscoe Group closed up 6 cents on Thursday at $2.36.