FTSE 100 Lower After ABF, Tesco and M&S Update On Christmas Trading

The FTSE 100 slipped around 0.2% in early Thursday trading as major U.K. retailers issued Christmas updates. Elsewhere in Europe, the DAX rose 0.4%, while the CAC 40 and Stoxx 600 each edged down 0.1%.

Among the biggest movers, BA. climbed 6.4%, Marks & Spencer gained 2.8% and Babcock rose 1.6%. On the downside, Associated British Foods dropped 10.8%, Tesco fell 4.8% and Sainsbury’s declined 3.5%.

Tesco reported a solid festive period, with like-for-like U.K. sales up 3.2% over the six weeks to 3 January and 3.7% across its most recent 19-week trading period.

Chief executive Ken Murphy said: “I am delighted with the strong Christmas we delivered for our customers. Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.”

The supermarket now expects adjusted operating profit for 2025/26 at the upper end of its £2.9 billion to £3.1 billion guidance.

Marks & Spencer shares rose after the retailer posted a robust Christmas, with group sales excluding Ocado up 3.3% to £4.15 billion for the 13 weeks to 27 December. Total food sales increased 6.6%, supported by 5.6% like-for-like growth.

ABF shares slumped after the company said adjusted operating profit and EPS would fall below last year’s levels, citing a challenging start at Primark and mixed results across its food divisions.

Separately, Greggs fell nearly 4% despite reporting higher fourth-quarter and full-year sales. Chief executive Roisin Currie said: “We made good progress in 2025, in a challenging year where subdued consumer confidence impacted the food-to-go market.”