Marks & Spencer boss Stuart Rose finally hailed a "recovery" at the high street chain after sales surged in the build-up to Christmas.
M&S said same store sales were 5.6% higher between October and December than they were in the same period 12 months earlier.
Mr Rose, who until Tuesday has refused to use what he calls "the R-word", said: "We have now delivered growth on growth in all areas of our business, thus completing the first part of our recovery plan."
M&S said like-for-like sales in general merchandise including clothes were up 7.1% in the three-month period, while food sales were up 3.6%.
Total sales growth including new and expanded stores was 9.2%, with general merchandise up 9% and food up 9.5%. It was also a good quarter for internet sales which were up 70% at M&S, with the website attracting nine million customers.
Overall, third quarter growth was slightly slower than in the first and second quarters but was against much tougher comparatives following a strong Christmas in 2005.
Mr Rose warned that the tougher environment was set to continue. "M&S had a good Christmas," he said. "In the fourth quarter, we come up against significantly tougher comparatives, whilst facing a more challenging retail environment.
"This quarter will be impacted by the next phase of our store modernisation programme, which starts earlier than last year.
"We plan to have over 70% of our store space in the new format by Christmas 2007."
He added: "We remain on track to further drive and broaden our business."
