Hove-based budget clothing retailer QS posted a spark in festive sales as shoppers snapped up low-cost women's and children's wear.
Like-for-like sales over the seven weeks to January 12 improved 4.3%, slightly ahead of expectations.
A spokesman said the lift had come from strong sales across QS's core ranges of clothes for women and the family.
The sales performance over Christmas was unable to stop underlying sales sliding 2% in the 24 weeks to January 12.
But QS said this was an improvement on the first 15 weeks of its second half when sales declined 5.15%.
The group has been hit by increased competition in the budget sector and is forecast to make a loss of £1.2 million for the year ending January 26 - a slump on last year's profits of £1.2 million.
QS is currently in talks, first announced in September, with an unnamed suitor that could lead to an offer being made for the retailer.
The group, which is expected to post final figures on March 27, said today these discussions were continuing.
QS has 189 stores across the south of England.
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