LONDON, Jan 12 (Reuters) - Britain's biggest retailer Tesco reported a 0.7 percent rise in underlying Christmas sales in its home market, capping a year of recovery with a solid performance over the key festive period.
Tesco, which like Sainsbury's, Asda and Morrisons have been battling with the rise of German discounters Aldi and Lidl, said underlying sales in its UK stores rose 0.7 percent in the six weeks to Jan. 7.
That compares to analyst forecasts of growth of 0.3 to 1.5 percent.
Trading over Christmas built on like-for-like sales growth of 1.8 percent for the 13 weeks to Nov. 26, Tesco's fiscal third quarter, that was also reported on Thursday. Analysts had forecast like-for-like sales growth of 1.25 to 2 percent for the quarter.
The group reiterated its outlook for the full year. (Reporting by James Davey and Kate Holton; editing by Guy Faulconbridge)