David Jones said it had increased its profit growth guidance to between 20 to 30 per cent for the second half of its financial year, which ends on July 25.
The store previously forecast growth of between zero and 5 per cent for the period.
Full year profit growth guidance was upgraded to between 8 to 12 per cent, up from the previous zero to 5 per cent range.
David Jones maintained earlier guidance of zero to 5 per cent profit after tax growth for fiscal 2010.
Trade had improved in May and June from a flat trend in April, and the group had traded ahead of the corresponding months last year on both a total and like-for-like basis, David Jones chief executive Mark McInnes said.
"May and June reflects a significant positive shift in our trading performance and demonstrates the resilience of the David Jones customer and brand strategy,'' he said.
History shows retailers are first in and first out of an economic downturn, Mr McInnes said, a hint that the economy was entering recovery.
"Whilst we still have to trade through July to complete the fourth quarter and we are not planning to repeat the clearance of excess inventory undertaken in July 2008, our trading to date has been pleasing and well above our expectations,'' he said.
David Jones reaffirmed its fiscal 2010 profit after tax growth guidance of between zero and 5 per cent off the new, higher fiscal 2009 base.
A further update on the group's outlook would be provided at David Jones's fourth quarter sales announcement in August, the company said.
