Shares in Marks and Spencer Group PLC (LSE:MKS) fell over 6% despite the food and clothing chain reporting that trading over Christmas broke its previous sales records.
Like-for-like sales growth 6.4% for the UK and Ireland in the 13 weeks to 28 December, though expectations had been high with industry data indicating gains nearer 10%.
M&S revealed Food LFL sales were up 8.9% compared to what was a strong comparative period a year earlier, while Clothing, Home & Beauty also gained 1.9%, though store sales were down 1.5%, partly impacted by weather as Next had also indicated earlier in the week.
Chief executive Stuart Machin said M&S "sustained trading momentum" and broke its own sales records across the business, with Food recording its biggest day in the run up to Christmas and general merchandise seeing its biggest online week.
Machin cautioned that "the external environment remains challenging, with cost and economic headwinds to navigate".
But he said "there is much within our control," adding that the transformation of the group "is a marathon, not a sprint, and we go into 2025 shifting up a gear and raring to go as we accelerate the scale and pace of change".