The Disney Store, the UK retail arm of the global empire, has returned to the black and revealed a pre-tax profit of £370,000 in its full-year report and accounts.

In the year to September 29, 2012, the retailer made the profit against a £3.7m loss last year, according to the figures filed at Companies House.

Sales increased 2.9% to £123m, which the retailer said was because of a better pricing strategy and investment in the store portfolio feeding through to sales. It singled out “significant” year-on-year growth of its flagship Oxford Street store.

A disney spokesperson told Retail Week: “Our turnover was up during this period thanks strong content from across The Walt Disney Company such as [new film releases] The Avengers, Spider-Man and Brave as well as our evergreen franchises such as Mickey and Minnie Mouse, Disney Princess and Disney Fairies. 

“We saw a general sales uplift, particularly online, there was less discounting and we had a great product range at multiple price points.”

They added that this costs were flat due to “prudent cost management”. 

Gross margin rose 5% as a result of better sourcing and reduced freight costs.

Since its year-end, Disney has closed some stores because they did not meet the retailer’s location and customer experience criteria, but it did not disclose the number or locations. It now has 45 stores, which is down 11 stores from 56 in June last year.

Last year Disney losses widened after the retailer invested in website launches in France and Germany. The spokesperson added: “We are pleased with the way guests in France and Germany have responded to these sites,” said the spokesperson but added that there are no current plans to launch more European websites.