Troubled department store Myer has cheered investors with a solid lift in third quarter sales.
Shares in the retailer bounced more than 10 per cent after it reported a 2.4 per cent lift in sales to $661.8 million during the 13 weeks to April 25.
Comparable sales, which strip out the effects of store openings and closures, rose 1.7 per cent.
For the year so far, total sales were up 1.7 per cent at $2.425 billion.
Myer attributed the solid sales growth to refurbishments at four of its major stores and two new stores that opened before last Christmas.
Online sales were also strong.
News of the sales lift was welcomed by investors, relieved that there had been some turnaround since Myer's disappointing first half profit result in March when the retailer also warned of disappointing sales for February and March.
"The update failed to provide any extensive guidance, however it was positive after a disastrous recent period," Quay Equities head of trading Tristan K'Nell said.
"Myer should also benefit from the budget."
Myer shares closed up 14.5 cents, or 10.28 per cent, at $1.555.
Retail stocks in general moved higher on Wednesday amid hopes stores would benefit from the federal budget's $5.5 billion package for small businesses.
The budget included plans for small businesses with turnover of less than $2 million to be able to immediately write-off assets worth up to $20,000.
Treasurer Joe Hockey hopes the measure will encourage small business owners to go out and buy assets ranging from coffee machines to photocopiers and ride-on-mowers.
Meanwhile, Myer is continuing to work on a major strategic review.
It didn't provide any update in its latest sales results, saying only that the review was progressing well and that investors would receive more details in due course.
Newly installed chief executive Richard Umbers launched the review after taking on the top job in March.
A few weeks later, the retailer scaled back its full year earnings forecast after reporting a 23 per cent slump in first half profit.
Some analysts expect Myer to close at least seven department stores and launch a capital raising to fund a major restructure.
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