Sales at Briscoe Group's homeware and sporting goods stores lifted at the end of last year compared with previous months, the retailer said.
Despite the strong improvement, sales were still down in the three months to the end of January compared with the same quarter a year ago.
Sales for the period fell 0.9% to $128.7 million.
When comparing stores that were open in both quarters, the group's sales were down 4.7%.
Briscoe Group chief financial officer Geoff Scowcroft said the sales result was better than expected, given lagging consumer spending.
Mr Scowcroft is not expecting an improvement in the retail sector over the next six to nine months.
The group's annual results are due to be released in March.