Woolworths' big box hardware chain Masters has posted a strong rise in quarterly revenue but its future remains in the balance.
Masters' sales jumped 23.5 per cent to $294 million in the three months to October 4, compared to the same period a year ago.
Woolworths home improvement managing director Matt Tyson says the group has slowed down the pace of store openings and focused on revamping their formats, including changing product mix and layout.
Mr Tyson says the revamped stores are driving momentum, with sales up more than 30 per cent compared to stores with the original format.
"We are not declaring a victory," he said.
"We know there is much more work to be done but we are encouraged by the progress of the new format stores."
Mr Tyson downplayed speculation he will step down before his contract ends in January.
"I'm no spring chicken and the journey we're on with Masters is a journey that will take some time," he told an analysts briefing on Thursday.
"But I fully intend to be engaged with this business on that journey for quite some time to come."
Morningstar analyst Gareth James said the future of Masters and its boss would be unclear until Woolworths appoints a new chief executive.
He said there was still a high possibility of some store closures or even a sale of Masters by Woolworths.
"The key question is what is happening to profits. In fiscal 2015 the business loss in the region of $200 million," he said.
"They have been light on the detail and have only given revenue figures but not profit figures."
During the first quarter, Masters launched a number of new products including Honda mowers, Sherwin Williams paint and Loctite adhesives.
Home Timber and Hardware sales for the quarter were $274 million, up 17.1 per cent, driven by sales from recent store acquisitions.
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