J Sainsbury PLC (LSE:SBRY) has said Christmas trading was its “biggest ever” as the supermarket also lifted financial services profit guidance for the year in an update on Friday.
Sales climbed by 3.8% over the six weeks to January 4, fuelled by 3.8% and 3.4% respective increases for grocery and clothing goods, while Argos saw a 1.1% uptick.
Chief executive Simon Roberts noted the festive trading period had been Sainsbury’s “biggest ever Christmas”.
He said: “Customers shopped later than ever and we achieved our highest ever sales in the final days before Christmas.”
Over the third quarter, sales climbed by 3.7% on a 4.1% increase in grocery but 0.1% drop for clothing goods.
Sales at Argos fell by 1.4% in the meantime, which Sainsbury’s said reflected “subdued customer spending” outside of the Christmas and Black Friday periods.
Guidance for an underlying retail operating profit of between £1.01 billion and £1.06 billion was reiterated, alongside for free cash flow from the division of £500 million.
Financial services underlying operating profit guidance was hiked to £30 million, from between £15 million and £25 million previously.
Sainsbury’s added participation in its Nectar loyalty scheme had hit a record, while plans to hike employee pay by 5% to £12.60 an hour, or to £13.85 in London, come August were also unveiled.