Beales saw its pre-tax profits soar 67% in the six months to May 1 – rising from £543,000 to £909,000.
Turnover was down 1.8% to £26.2m, but the department store group says it has been cutting costs.
“We are continuing to pursue an aggressive promotional strategy, to increase our buying-in margins and to focus on cost control,” it said.
Beales said that its fashion departments had chiefly delivered the improvement in its results, while spending on big-ticket items such as furniture was still suffering from consumer caution.
Beales operates 12 department stores, including Robbs of Hexham, which it bought last month after the collapse of its owner, Vergo Retail. It says it is now looking to expand the chain further.
In its last financial year Beales sustained losses of £900,000.