The company has released its third-quarter sales figures.
Tesco has reported a third successful Christmas, saying that toys, clothing and food were strong over the festive period, with the toy category demonstrating an 8.5% rise.
Dave Lewis, chief executive at the company, commented: “We are very encouraged by the sustained strong progress that we are making across the group”.
The company’s sales have been recovering since it posted a record loss in 2015.
The third-quarter results show that Christmas like-for-like sales, which strip out the impact of new store openings, grew 0.7% in the UK, and were up by 0.3% across the group.
It also shows that UK like-for-like sales rose 1.8% in the quarter, while group sales were up 1.5%.
“In the UK, we saw our eighth consecutive quarter of volume growth and delivered a third successful Christmas”.
Tesco is one of a large list of UK retailers that have reported strong Christmas sales.