Tesco raises profit outlook, M&S's strong Christmas
STORY: Tesco upgraded its profit outlook once again on Thursday (January 11).
Britain's biggest retailer now expects its key profit figure to hit $3.50 billion in the year to end-February 2024.
It's up from last year's $3.17 billion, and slightly ahead of previous forecasts.
Tesco's optimism follows a better-than-expected Christmas, where it sold more than 1 million fresh whole turkeys, turkey crowns and joints, 57 million mince pies and 6.6 million bottles of Prosecco.
Tesco said it was also helped by strong demand for its premium ranges, and the popularity of its loyalty scheme.
CEO Ken Murphy told reporters he was "cautiously optimistic" about the health of the UK consumer.
He noted mortgage rates were starting to fall, fuel prices deflating and wage rates growing.
For Tesco, its UK like-for-like sales rose 6.8% over the six weeks to January 6 - ahead of analyst forecasts.
The retailer is benefiting from a strategy of matching the prices of discounter Aldi on key items.
It wasn't just Tesco enjoying a strong Christmas.
Clothing and food giant Marks and Spencer also reported a better-than-expected 8.1% rise in sales over the period.
It was driven by market-leading growth in food and a strong performance in womenswear.
But M&S shares were down over 5% in morning trade, while Tesco was also slightly down.
