Britain's biggest floor coverings retailer Carpetright said it expected full-year profit to be toward the upper end of market forecasts after trading improved both at home and abroad.
The group had made a string of recent profit warnings due to tough trading in the Netherlands and weak demand in the UK.
But it said today that underlying pretax profit had more than doubled to £6.7m in the six months to October 25.
Sales at UK stores open over a year grew by 6.5% in the period, aided by promotions.
Carpetright's rest of Europe division, made up of Ireland, Belgium and the Netherlands, saw underlying sales fall 3.3% but the unit returned to profit in the half due to lower costs and improved sourcing which boosted its margins.
"Having made a solid start to the year, we now expect full year underlying pretax profits to be towards the upper end of current market expectations," Carpetright's Wilf Walsh, who joined as chief executive in July, said.
The firm said current market expectations for the year to May 2 ranged from £8-11m.
The group trades from 463 UK stores and 139 in its European unit.