Topps Tiles PLC (LSE:TPT) shares climbed 10% to 37.59p on Wednesday morning after the retailer reported further improvement in sales growth.
With sales growth supported by margin improvement, the London-listed company reconfirmed its full-year guidance of delivering both sales and profit growth.
Group sales, excluding its recent CTD acquisition, increased 10.1% year-on-year in the third quarter, a step-up from the 4.1% reported in the first half and the 9.5% in the first seven weeks of the quarter.
Growth has improved across all divisions, namely Topps Tiles, Parkside and its online Pro Tiler Tools and Tile Warehouse sites.
Core Topps Tiles like-for-like sales were up 7.3%, up from 6.2% in the first seven weeks of the quarter.
With the Competition & Markets Authority's investigation of the CTD deal complete, it was reported that management has made "rapid progress" in integrating the business and expects CTD to be "at least breakeven" by the year-end.
Analysts noted that new CEO Alex Jensen is to start in September, with a new interim CFO beginning at the end of this month.
Shore Capital analysts said: "While the relatively low margins of the business and the uncertainty of the sector contribute to the current undemanding rating of the stock, we are encouraged by the continued progress on both sales and gross margin."