Topps Tiles said that its current financial year has started well with like-for-like sales in the UK up 5.5% in the 14 weeks to January 3.
Total sales were also ahead, up 3.9% for the flooring specialist.
Topps Tiles said it was pleased with its performance which it believes shows that consumer confidence is returning. However Topps firmed that it remained cautious for 2010 which it expects will present a challenging economic environment for customers.
Topps now has 308 stores and said it would continue to pursue opportunities to grow its estate in the next year.
The retailer confirmed that it has withdrawn support and funding from its loss making Dutch business which has now been placed in administration and the stores have stopped trading.
In November Topps completed a fundraising of £15.4m which it said would help it to support its growth strategy and give it financial flexibility in the event of another fall in consumer spending and confidence.