Oroton's move away from heavy discounting is bearing fruit for the embattled luxury accessories retailer.
Chief executive Mark Newman says like for like sales growth rose eight per cent during the first 17 weeks of its current financial year in a sign the strategy is working.
"Although it is early in the year and the biggest trading months are still ahead of us, this is a positive sign that the investment in the brand over the past 18 months is beginning to bear fruit," Mr Newman told the company's annual general meeting on Friday.
He said the strategy to elevate the Oroton brand to a "true accessible luxury positioning" was well underway.
This included a new store layout to create a more luxury shopping environment.
The group's five Gap stores, now open for more than one year, have also performed strongly with like for like sales growth up 10 per cent for the first 17 weeks of the year.
"We have clear plans in place for the all important Christmas and New Year trading period for both brands and are well placed to react to market conditions as they unfold," Mr Newman said.
Oroton's full year profit for fiscal 2015 dropped 68 per cent to $2.6 million, from $8.3 million a year earlier.
The company explained in September that its move away from heavy discounting, expansion of the GAP brand and losses from the now exited Brooks Brothers Australia joint venture weighed on the 2015 result.
Shares in Oroton were up nearly 10 per cent, or 24 cents, to $2.84.
