Marks & Spencer on Thursday reported a better-than-expected rise in third-quarter sales, covering the Christmas period, and confirmed its targets for the 2023/2024 financial year.

M&S, one of Britain's most iconic retailers, saw like-for-like sales climb by 8.1% in the 13 weeks to December 30.

By way of comparison, RBC analysts were expecting a 7.5% rise.

Like-for-like sales in the clothing and home products division rose by 4.8%, more than the 4% increase RBC had anticipated.

In food, sales rose by 9.9%, again better than expected, as RBC was targeting +9.5%.

Although M&S was cautious, citing an uncertain economic outlook, cost pressures and wage increases, it nevertheless maintained its forecasts for its full financial year ending at the end of March.

On the London Stock Exchange, M&S shares were down by more than 5% by mid-morning, clearly underperforming the FTSE 100 index, which was up by 0.1%.

In their reaction note, analysts at RBC highlighted the group's disappointing international performance, with sales falling by a heavier-than-expected 6.4% in the third quarter.

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