![](\"https:\/\/e3.365dm.com\/22\/01\/768x432\/skynews-asos-shares_5640065.jpg\")
<\/p>\nTwo major players in fashion retail have reported differing fortunes in terms of momentum over Christmas, with Marks and Spencer (M&S) having more to smile about than ASOS for once.<\/p>\n
While both grew sales over the festive season, the online-only retailer had already downgraded expectations due to headwinds including tougher competition in advance of Christmas.<\/p>\n
ASOS forecast a hit from lower demand and supply chain disruption in November and reiterated that those issues had remained on Thursday when it posted total sales growth of 5% over the four months to 31 December.<\/p>\n
It parted ways with its chief executive during that period – prompting something of a shock for investors as ASOS had long been a darling of the stock market thanks to consecutive periods of explosive growth.<\/p>\n
Shares fell by more than 50% last year as its challenges mounted.<\/p>\n
<\/p>\n
M&S, which ASOS overtook in terms of market value in 2017 as years of turnaround plans failed to deliver, finally had a Christmas to celebrate.<\/p>\n
It nudged up its profit outlook thanks to a market-leading grocery performance but also grew clothing and home sales – the latter proving a drag on its profitability for more than a decade.<\/p>\n
The retailer said fashion and home sales were 37.7% up in the 13 weeks to 1 January at just over £1bn when compared to the same period last year.<\/p>\n
Food sales up 10% year-on-year<\/strong><\/p>\n The figure was 3.2% up on a pre-pandemic basis. Analysts had expected sales to decline.<\/p>\n Food sales – bolstered by its online delivery partnership with Ocado – were 10% up on a 12-month basis at £1.9bn.<\/p>\n It now expected full-year profit before tax and adjusted items to be at least £500m compared to previous guidance of about £500m.<\/p>\n Chief executive Steve Rowe said: “Trading over the Christmas period has been strong, demonstrating the continued improvements we’ve made to product and value.”<\/p>\n However, he warned that inflation in fashion would materialise in the next few months.<\/p>\n His chief financial officer added that it was inevitable that some of the cost pressures would be passed on to shoppers.<\/p>\n![](\"https:\/\/e3.365dm.com\/22\/01\/768x432\/skynews-marks-spencer-shares_5640064.jpg\")
<\/p>\n
![\"Marks](\"https:\/\/e3.365dm.com\/21\/12\/768x432\/skynews-marks-and-spencer-christmas_5619030.png?20211218100326\")
<\/p>\n