Topps Tiles said it expects to report UK revenues up 2% to £182.4m in the 53 weeks to October 2.
On a same reporting week basis total revenues will be broadly flat compared with the prior year.
Like-for-likes are expected to rise 1.7%, compared with a slump of 13.1% in the prior year.
In the fourth quarter Topps Tiles said like-for-likes are expected to have risen 4%.
Topps Tiles expects adjusted pre-tax profit for the 53 week period to be “within the range of analysts’ estimates”, which is between £14.5m and £17.1m.
Topps Tiles chief executive Matt Williams told Retail Week: “It’s a good result, especially the fourth quarter. We’re outperforming the market. It’s still tough out there, but we’re doing well and taking share. We’ve focused on the consumer and giving them what they want.”
Williams said that as a result of the VAT rise in January, consumers might “roll forward projects” and that Topps Tiles expects a “buiser than normal Q1 and a quieter than normal Q2”.
The retailer said it will open a new 50,000 sq ft warehouse to feed expansion plans and to take more product development in house.
Singer Capital Markets analyst Matthew McEachran said that “despite this better than expected performance…..We retain our cautious stance on Topps given our belief that consumer spending is likely to come under further pressure and a housing market correction looks increasingly likely, including a drying up of house moves.”
Topps Tiles trades from 313 stores in the UK, having opened 12 during the financial period and closed or relocated eight.
The retailer said: “There have been no significant unexpected changes in the financial position of the Group since the publication of the Interim Report for the half year ended 3 April 2010.”
Topps Tiles will reveal its preliminary results for the period on November 30.