Marks & Spencer has reported healthy sales growth in July, August and September in a sign that the High Street icon's recovery is continuing.

Sales improved in all adult clothing areas over the comparative quarter last year

M&S

The trading statement is the first since Roger Holmes took over as chief executive in July.

M&S said then it had turned the corner and rediscovered its knack for mid-market clothing, and the latest sales figures have beaten expectations.

Total sales grew 11% in the July to September period compared with last year, while like-for-like sales, which strip out changes in store numbers, grew 10%.

The growth figures were double what industry-watchers had been expecting, despite warm weather in September which slowed down sales of autumn clothing.

'Bigger market share'

"Sales improved in all adult clothing areas over the comparative quarter last year," the company said.

They also beat the 7.7% sales growth the retailer reported in April, May and June of this year.

It said it experienced "double-digit growth" in sales of its womenswear, menswear and underwear, "resulting in an increase in overall market share".

Price cuts

The firm said it achieved its planned improvement in gross profit margins on clothing for the first six months of its financial year.

However, it said better-than-expected gains in the gross margin were chipped away by discounting, which also overshot expectations.

The firm said discounting was the result of a "disappointing" overall performance for its childrenswear, despite a strong start for its David Beckham-inspired range in September.

Sales of the core clothing, footwear, household goods and gift ranges performed particularly well. M&S said non-food sales improved 13.2% on a like-for-like basis.

This compares with analysts' forecasts of a rise of about 7%. Non-food make up more than half the retailer's total sales and contribute the bulk of its profits.

Food sales rose 6% on a like-for-like basis, beating analysts' predictions of a 2.5% improvement.

Thumbs up

"Overall, the improvements made to date in clothing appeal, store ambience, food innovation and home products have clearly been appreciated by customers and are delivering results," said Mr Holmes.

Investors greeted the figures by sending M&S shares up 17 pence, or 5.1%, to 331.5 pence by mid-morning in London.

M&S own stockbroker, Cazenove, raised its forecast for the retailers' full year profits by 4.6% to �680m ($1.06bn).