The Disney Store narrowed pre-tax losses from £11.3m to £1.7m in the year to October 2.
Disney Store said losses had narrowed since 2009, when the retailer suffered when consumer spending fell during the recession.
Turnover rose from £100m to £111.5m as it invested in stores and benefited from strong product launches, like Toy Story 3. Since year end trading has been robust.
Three new format stores opened at the end of the period and are said to be working well.