Poundstretcher posted a 6% like-for-like jump in the first quarter driven by its food and homewares categories.
The period covers April 1 to August 31.
Poundstretcher chief executive Aziz Tayub said: “We are currently experiencing double digit growth across our food and household business and are extremely confident that we can continue this trend.
“It’s great to know that our loyal shoppers are continuing to support our business, enabling us to drive like for like growth.”
Poundstretcher operates 407 stores and plans to open another 30 this year.
The retailer said its pet store Pet Hut has also experienced an “excellent” start to 2014. The 70 store pet specialist plans to open 100 more by the end of the year and plans to launch online in September.