The Richard Branson-owned entertainment retailer disclosed a 3.2 per cent sales rise over the five weeks to January 7.
Virgin Megastores' margin improved 0.1 per cent, alleviating fears that trading this Christmas would be sluggish.
Managing director Simon Douglas said: 'Contrary to retail industry concerns prior to the Christmas period, shoppers returned to the high street in droves.'
The group experienced some strong regional performances, with Ireland notching up a 9.1 per cent increase in like-for-like sales.
However, Douglas expressed concern over the consumer climate in central London. He said: 'A particular concern is our West End stores. It is well documented that the West End has really suffered since the July 7 bombings. And, with an increase in the congestion charge, public transport fares and attractive out-of-town retail parks, the West End will remain a challenge.'
DVD sales increased by 4.8 per cent over the period and like-for-like sales of games surged by 32 per cent. Music sales were more modest at 0.1 per cent like for like.
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