What: British retailer Marks & Spencer nudged up its profit outlook after it reported a strong Christmas performance, with sales rising 18.6% year-on-year and 8.9% compared to two years ago.

Why it is important: The update provides evidence that one of Britain’s most elusive turnarounds could finally materialise. M&S’s shares have nearly doubled over the past year.

International sales rose 17.4% on the year and 5.1% on two years ago. Total group sales rose to GBP 3.272 billion — an 18.5% one-year rise and an 8.6% two-year jump. Online sales also continued to be strong, with growth of 50.8%. But store sales were down 10.8% on 2019/20, with retail parks up, continuing to outperform stores in city centres.

Food sales increased 12.4% against its pre-pandemic performance two years ago in the 13 weeks to 1 January, beating market forecasts of 10% growth. Clothing and home sales rose 3.2% on the same basis, also surprising on the upside. The market had expected a 0.9% fall.

M&S raises its outlook