‘Super Thursday’ revealed a strong showing from quoted retailers, although but this is likely to prove a last hurrah for the sector. Inflation will dampen a debt-driven festive consumer splurge and cost pressures are set to weigh on margins.

A torrent of updates (12 Jan) revealed Marks & Spencer (MKS) as a surprise festive winner. Chief executive Steve Rowe unveiled a long-awaited return to positive like-for-like sales growth in the Clothing & Home division. While the 2.3% gain was delivered against easy comparatives, it demonstrated Rowe’s turnaround plans for the division are paying off.

Also providing Christmas cheer was department store Debenhams (DEB). Like-for-like sales were up 5% in the seven weeks to 7 January, underpinned by beauty and gift sales, though new CEO Sergio Bucher still has his work cut out in preventing steep profit declines.

Other Super Thursday updates arrived from Tesco (TSCO), which served up evidence of a third successful Christmas, yet disappointed with modest UK like-for-like sales growth of 0.7% in the six week Christmas period. Cutting-edge fashion seller ASOS (ASC:AIM) upgraded full year top line guidance following 30% sales growth in the four months to December and is accelerating infrastructure investment to handle its rapid growth.

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