Marks & Spencer's announced better-than-expected sales figures for the Christmas quarter on Thursday, thanks in particular to its strong performance in food.

Like-for-like sales in its food division rose by 8.9% in the 13 weeks to December 28, well ahead of the 7.5% increase anticipated by analysts.

In ready-to-wear, home and beauty, sales rose by 1.9%, again better than the consensus forecast (+1.5%).

Despite this better-than-expected performance, M&S shares fell by more than 5% on Thursday morning on the London Stock Exchange, posting the biggest drop on the FTSE 100 index.

The share had nevertheless climbed 7% between November 20 and January 3 in anticipation of strong sales figures over the festive period.

This brings the share's increase over the past 12 months to around 25%.

While citing an "uncertain" outlook for economic growth, interest rate trends and inflation, the retailer nevertheless expressed confidence in its ability to make further "progress" between now and the end of the financial year, which closes at the end of March.

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