M&S Xmas food sales beat expectations

(Sharecast News) - Food and clothing retailer Marks & Spencer posted a 6.4% rise in UK third quarter like-for-like sales after a better-than-expected performance over the key Christmas period, and said it was still confident of making progress in the rest of the year despite a tough economic environment. The company said sales came in at £3.9bn. Food revenue in the 13 weeks to December 28 increased 8.9% and 1.9% for home, clothing and beauty against expectations on 7.8% and 0.7% respectively.

"As we enter the new year, the outlook for economic growth, inflation and interest rates is uncertain and the business faces higher costs from well-documented increases in taxation," said chief executive Stuart Machin.

"However there remain substantial opportunities and we are focused on what is within our control, as we reshape M&S for growth. Therefore, as indicated at the half year results in November, we are confident of making further progress in the remainder of the year."

Reporting by Frank Prenesti for Sharecast.com