Myer says its first-quarter sales have risen by one per cent with sentiment improving slightly thanks to interest rate cuts.
The department store's sales in the thirteen weeks to October 27 totalled $688 million, up one per cent from the previous corresponding period.
On a comparable stores basis, sales were up 0.8 per cent on the previous period.
Chief executive Bernie Brookes said the trading environment during the first quarter continued to be difficult, but there was a modest improvement in consumer sentiment.
"While we welcomed the October interest rate cut, there are a myriad of factors currently in the mix and influencing discretionary spend, so we continue to be cautious about the trading environment," he said in a statement on Thursday.
Mr Brookes said the company's turnaround strategy appeared to be having an impact.
"In the context of this environment, we have been pleased with continued progress in executing our five-point strategic plan to improve customer service, to enhance our merchandise offer, strengthen our loyalty program, build a leading omni-channel offer and optimise our store network," he said.
Myer's best performing categories during the quarter were menswear, womenswear, cosmetics and children's wear and the strongest performing states were Western Australia and Queensland.
During October, Myer launched two new loyalty programs - a Myer one smartphone application which allows members to scan their digital loyalty card to earn shopping credits and a pay with points initiative with the Commonwealth Bank.
Mr Brookes said the Sass & Bide fashion brand, which Myer acquired early last year, was selling particularly well.
He said Myer was also pleased with the design of its stores at the start of the festive trading and summer fashion season.
"We are looking forward to our busiest time of year during the Christmas and stocktake trading," he said.