Tesco said United Kingdom like-for-like seasonal sales rose by 1.9% with "record sales and volumes" in the four weeks leading up to Christmas Day.
Tesco said its biggest ever sales week in the United Kingdom was over Christmas, with 58 million customer transactions and 770,000 online grocery deliveries in one week.
United Kingdom supermarket Tesco (TSCO) reveals strong third quarter performance, but fails to hit market expectations.
Tesco chief executive Dave Lewis said that the fallout from that had created challenges which had taken "the shine off an otherwise outstanding performance for the period as a whole". The general merchandise category includes all non-food items but excludes clothing.
Tesco said all its formats, covering stores and online, had performed well, resulting in record sales and volumes in the four weeks leading up to Christmas Day.
Tesco's UK LFL sales growth of 1.9% was driven by a 3.4% rise in food.
Mr Rowe said that it had been a "mixed quarter" with its clothing and home division recording a 2.8pc like-for-like decline after suffering from a dismal October which dragged fashion sales lower across the industry.
The group, which reset its strategy in November two months after Archie Norman joined as chairman, said clothing and homeware like-for-like sales fell 2.8 per cent in the 13 weeks to December 30th, its fiscal third quarter.
But that was below the 2.8pc increase that had been expected by analysts, and sent Tesco's shares tumbling by more than 4pc.
Debenhams and Mothercare have both issued profit warnings, John Lewis [JLPLC.UL] said on Thursday that higher costs and tough competition had blunted the benefits of solid Christmas sales, while House of Fraser saw its sales fall. Both retailers reported updates in line with expectations with no change to their full year forecasts.
The supermarket says its efforts to pass on less inflation to its consumers compared to rivals could be behind its sales performance.
German chain Lidl claimed this week that it was the "fastest growing supermarket" over Christmas after booking record festive sales.
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