The FTSE 100 was lower on Thursday as investors digested mixed festive trading updates from Tesco, AB Foods, and Marks & Spencer.

London’s leading index was down 0.2% at 10,028 at the time of writing.

Although there will be underlying concerns about geopolitics and what Donald Trump will do next after threatening military action to take Greenland and seizing more oil tankers, there was enough on the corporate front to keep UK-focused traders busy with a raft a festive trading updates.

Tesco shares fell, AB Foods tanked, and Marks & Spencer received a favourable market reaction, after releasing their respective updates.

On the face of it, Tesco’s Christmas trading update wasn’t that bad. Market share was the highest in a decade and group Christmas sales rose 2.4%. But this wasn’t enough for investors with lofty expectations after a strong run in the stock last year, and shares sank 4%.

“Tesco’s share price had a great 2025, but it was accompanied by a sharp increase in its valuation. The consequence of this has been clear this morning,” explained Chris Beauchamp, Chief Market Analyst at IG.

“Simply reporting good numbers isn’t enough to avoid a share price fall, and having fallen short on Q3 sales investors have been given a reason to sell and await a better set of figures.” 

Marks & Spencer, on the other hand, had a much better response to their festive trading period. Shares rose on Thursday

“The festive period delivered a respectable showing in food, with like-for-like sales up 5.6 per cent, but that’s where the Christmas cheer ended. Clothing, home and beauty slipped 2.9 per cent, a reminder that the aftertaste of last year’s cyber-attack still lingers,” Mark Crouch, market analyst for eToro said.

“It’s perhaps unsurprising that food once again did the heavy lifting, underlining the strength of M&S’s core proposition. Yet investors are unlikely to be sweet-talked by groceries alone. The proof, as ever, is in the pudding, and M&S shares are down around 20 per cent since October, signalling doubts that last year’s fallout has been contained.”

The differing reactions to Marks & Spencer’s and Tesco’s results are largely due to share price performance leading up to the results. Marks & Spencer had a torrid end to the year as investors counted the cost of a cyberattack, while Tesco added 50% from its April low to its November high.

Primark-owner was the FTSE 100’s top faller, tanking 11%, after issuing a profit warning amid poor sales at the retailer.

“Primark has had a challenging start to the financial year, with a mixed performance,” said George Weston, Chief Executive of Associated British Foods.

BAE Systems was the FTSE 100’s top riser after Donald Trump announced he would like the US to increase its defence budget to $1.5 trillion from $1 trillion and called on manufacturers to invest in new plants rather than distributing cash to shareholders.

“The proposed sharp increase in the defence budget would be good news for defence contractors, explaining why shares have rallied across the sector,” said Russ Mould, investment director at AJ Bell.

“BAE Systems jumped more than 6% while US names such as Lockheed Martin moved in a similar fashion in pre-market trading.”

Tesco shares sank on Thursday after the grocer delivered a festive trading statement that missed expectations and exposed the vulnerability of the stock’s valuation after a strong run through 2025.

On the face of it, Tesco had a reasonable festive trading period, prompting the supermarket giant to upgrade its profit outlook to the upper end of its £2.9bn to £3.1bn operating profits guidance as it achieves its highest UK market share in over a decade.

The retailer’s market share rose 23 basis points to 28.7%, whilst the 4-week share climbed 31 basis points to 29.4%. This outperformance was driven by volume and value growth ahead of the market.

Fresh food proved a standout category during the festive period, with like-for-like sales up 6.6%, while the premium Finest range achieved 13.0% sales growth, with party food up 22%.

Online sales grew 11.2%, boosted by extended Christmas Eve deliveries, whilst rapid delivery service Whoosh surged 47%. The non-food division also performed well, with Home & Clothing like-for-like sales up 2.1%.

However, retail sales growth missed expectations, and investors dumped the stock on Thursday.

“Tesco posted a softer-than-expected Christmas trading update, signalling that growth is becoming harder to sustain in a more price-sensitive consumer environment,” said Lale Akoner, global market analyst for eToro.

“UK like-for-like sales missed market expectations, reflecting cautious household spending and intensifying competition from discounters, which triggered a sharp negative share price reaction.”

Booker played a part in the disappointment on Thursday, delivering mixed results, with core catering sales up 2.4% supported by specialist merchant Venus. However, core retail sales declined 0.4%, impacted by approximately 200 basis points from a lower-margin national account contract ending in August, alongside continued tobacco market weakness.

“Tesco’s share price had a great 2025, but it was accompanied by a sharp increase in its valuation,” explained Chris Beauchamp, Chief Market Analyst at IG.

“The consequence of this has been clear this morning. Simply reporting good numbers isn’t enough to avoid a share price fall, and having fallen short on Q3 sales investors have been given a reason to sell and await a better set of figures.” 

Marks & Spencer has pleased investors with solid results for its third quarter ending 27 December 2025, with food sales driving growth whilst fashion sales declined amid fragile consumer confidence and unseasonably mild weather.

The retailer’s food business delivered strong performance, with underlying sales rising 6.6% and like-for-like sales up 5.6%. UK volume growth reached 2.3%, with M&S achieving a historic high market share of 4.0% in November – marking over three years of consecutive market outperformance.

Marks & Spencer shares rose on the immediate reaction to the release, gaining 3% in early trade on Thursday.

Food was the real winner over Christmas for M&S. Total food sales hit £2.7 billion, supported by robust demand across core grocery categories. Innovation in Italian ready meals, in-store bakery and deli offerings contributed to growth, whilst value ranges including ‘Remarksable Value’ and ‘Bigger Pack, Better Value’ expanded by 20%.

The division benefited from increased customer numbers and shopping frequency, alongside strong operational execution that reduced markdown and waste versus the prior year.

“Marks & Spencer will be hoping the Christmas quarter provides a springboard into the new year, one the retailer desperately needs,” said Mark Crouch, market analyst for eToro.

“The festive period delivered a respectable showing in food, with like-for-like sales up 5.6 per cent, but that’s where the Christmas cheer ended. Clothing, home and beauty slipped 2.9 per cent, a reminder that the aftertaste of last year’s cyber-attack still lingers.”

Fashion, Home & Beauty sales fell 2.5%, with like-for-like sales down 2.9%, generating £1.3 billion in revenue. Whilst online sales returned to growth, this was offset by declining store sales attributed to reduced high street footfall and lingering effects from an earlier operational incident impacting stock data and management.

Despite entering the sale period with higher stock levels than last year, sell-through rates proved strong. M&S regained market share leadership in the category and now ranks first for customer perceptions of style, quality and value. New season products are resonating with customers, and the Bristol Cabot Circus store is outperforming expectations.

International and Ocado Performance

International sales rose 0.9% to £158 million, with new wholesale agreements and online growth offsetting shipment phasing issues and weaker Indian performance.

Ocado Retail sales increased 13.7% to £843 million, driven by 10.7% volume growth and 11.0% order growth. M&S products on Ocado.com grew 16.3%, representing approximately 30% of total Ocado Retail sales.

“Having been on cloud nine earlier in the year, the cyber incident delivered a stiff dose of reality for M&S management and investors alike,” Crouch said.

“In a fragile consumer environment, M&S cannot afford to let anymore momentum slip through its fingers. Christmas may have steadied the ship, but turning seasonal cheer into durable growth will now require flawless execution.”

Galantas Gold (LON: GAL) is acquiring 100% of the Andacollo Oro gold project in Chile. This is an open pit mine with a historical inferred mineral resource estimate of 5.06M ounce of gold. It has been in production in the past. The seller is owned by Galantas Gold executive Robert Sedgemore, so it is a related party deal. His company bought the mine from Dragones, whose former owner will receive payments of $27.5m in the four years to the end of 2029, as well as initially being issued 91.3 million Galantas Gold shares. Galantas Gold will assume $3m of debt and pay $1.5m to Robert Sedgemore. The share price jumped 178.1% to 28.5p.

Biopesticides developer Eden Research (LON: EDN) says Mevalone has been granted approval in France to use on grapes to control downy and powdery mildew. This is an extension on existing approvals. The opportunity is estimated to be worth €8m. The share price gained 16.7% to 3.15p.

ECR Minerals (LON: ECR) says the Raglan gold project in Queensland will commence mining this month. This will generate cash for the Blue Mountain project. The share price increased 15.9% to 0.365p.

Greatland Resources (LON: GGP) produced 86,273 ounces of gold in the fourth quarter of 2025, up from 80,890 in the previous quarter. Cash increased to $948m. The share price improved 6.76% to 574.6p.

FALLERS

Graphene technology developer Directa Plus (LON: DCTA) says 2025 revenues improved from €6.66m to €7m and the loss will be lower. Cash has fallen to €1.5m, which is much less than the outflow in 2025. A non-core land sale could generate €500,000. Joint ventures and licensing opportunities are being assessed. The share price slumped 25.9% to 10p, but it is still 48% ahead over the past five days.

Extended reality technology company Engage XR (LON: EXR) is still suffering from a tough market with contact delays and poor renewals. In 2025, revenues were €1.9m and net cash has fallen to €1.6m. Cash is being conserved and there are potential opportunities in education. Forecasts are under review. The share price dipped 26.3% to 0.35p.

Goldstone Resources (LON: GRL) operates the Homase gold mine in Ghana which produced 2,912 ounces of gold in 2025 and generated revenues of $10m. Heavy rainfall and inspections held back production. Avrage all-in sustaining cost was $2,781/ounce up until November and it is expected to be $2,500-$2,900/ounce in 2026. Production could reach 4,000 ounces this year. The share price slipped 9.09% to 0.5p.

Oriole Resources (LON: ORR) reports that the first two holes at Mbe North in Cameroon have returned significant gold intersections. The geology is similar to the find in the south of the project area. Greenwood Capital Partners estimates that the new area could beat the exploration target, which is 370,000-605,000 ounces of contained gold. The share price fell 9.09% to 0.3p.

The FTSE 100 eased back on Wednesday as traders sold down positions in miners and oil majors amid a pause in the recent commodities rally. 

With the US incursion into Venezuela proving to be a bit of a non-event for commodity markets, miners and oil majors fell back, dragging the index with them.

Traders may also be marginally nervous about Trump’s plan for Greenland, which could include military action, according to a White House communication released overnight.

London’s leading index was trading down 0.6% at 10,055 at the time of writing – but was still firmly above the 10,000 level. One would expect this mark to be tested in the coming days as traders test 10,000’s validity as a support level. 

“The FTSE 100 retreated from yesterday’s record high amid murmurings about the fate of Greenland and lower oil and precious metals prices,” says AJ Bell investment director Russ Mould.

“As well as pledging to turn over between 30 and 50 million barrels of Venezuelan oil to the US following the weekend strikes on the country, prompting concern about crude oversupply and pressuring prices, President Trump is looking at options to acquire Greenland – with military action apparently not ruled out.

“For now, the market doesn’t appear to be too concerned that an attack will materialise, something Danish prime minister Mette Frederiksen has warned would spell the end of Nato.”

There were slightly more FTSE 100 risers than fallers on Wednesday, but the degree of selling of miners and oil companies meant the index dropped.

Antofagasta, one of the best performers in the early days of 2026, was the top faller on Wednesday, falling 4.8%, as copper prices stalled. 

Lower oil prices weighed on the FTSE 100’s oil majors, with BP and Shell shares dropping by over 4%.

A pullback in silver prices after a storming end to 2025 hit Fresnillo shares, which were also down by more than 4%.

There were a few FTSE 100 corporate updates on Wednesday and little in the way of economic catalysts, so investors will look to the US markets for a steer as the session progresses.

The S&P 500 closed at a record high overnight as confidence in AI stocks returned.

The FTSE 100 outperformed the S&P 500 in 2025 as defensive sectors outperformed tech. It will be interesting to see how the early months of 2026 play out with US tech, especially related AI shares, trading well off recent highs and the FTSE 100’s more defensive constituents still riding high.

Tekcapital portfolio company Innovative Eyewear has announced preliminary unaudited results showing record-breaking growth, with full-year 2025 sales reaching $2.7 million, representing a substantial 65% increase from $1.6 million in 2024.

Most notably, the smart eyewear manufacturer, which produces smart eyewear under the Lucyd, Lucyd Armor, Reebok, Eddie Bauer and Nautica brands, achieved fourth-quarter sales of approximately $1 million, a 45% increase compared with the same period in 2024.

The continuation of this sales performance would see the firm generate $4m in revenue this year and put it on a path to profitability.

Lucyd management attributes the strong performance to operational progress and growing traction across its brand portfolio, particularly the Lucyd Armor smart safety and Reebok sport collections.

The safety line is becoming a real winner for the firm, and the company now has approximately 44% market share of smart safety glasses on Amazon.com and is believed to be the only smart safety glass on the platform with full safety certification in both the US and Canada.

In a display of confidence in the company’s prospects, five senior executives have announced their intention to purchase shares in the open market. Harrison Gross (CEO), Oswald Gayle (CFO), Joaquin Abondano (COO), Eric Cohen (CTO) and Konrad Dabrowski (Chief AI and Growth Officer) plan to make the purchases.

The company said, ‘The planned purchases reflect management’s strong confidence in the Company’s strategic direction, long-term growth prospects, and current market valuation.’

The timing and amount of purchases will depend on market conditions, with all transactions conducted in compliance with applicable securities laws and the company’s insider trading policy.

“Whilst these results remain subject to audit, we are pleased with the preliminary sales growth achieved in both the fourth quarter and full year 2025 compared to 2024,” said Harrison Gross, CEO of Innovative Eyewear.

“We believe this performance reflects growing awareness of our brand portfolio and increasing demand for eyewear that integrates smart features alongside vision correction and protection, and the ability to easily use our eyewear with a number of leading AI platforms. Our 2025 efforts to build a robust global fulfilment network have helped to position the Company for faster scale-up across hardware stores, retail, and optical chains worldwide. We are optimistic about our prospects for significant placements with national, well recognized chains during 2026.”

Topps Tiles shares ticked gently higher on Wednesday after the flooring specialist signaled steady growth in their first quarter as digital channels helped boost sales amid the integration of acquisitions.

The company made reasonable progress in the year ending September 2025, and today’s Q1 trading statement suggests this continued into the start of the current financial year. 

Topps Tiles has delivered its fifth consecutive quarter of like-for-like growth, with revenues excluding recently acquired CTD stores, rising 3.7% year-on-year in the 13 weeks to 27 December 2025, outperforming the wider market.

The UK’s leading tile specialist reported like-for-like growth of 2.0% in its core Topps Tiles brand, driven by strong trade performance and expansion in strategic category extensions under its “Mission 365” initiative. 

The firm said sustained growth has helped offset ongoing cost inflation pressures.

Including CTD, group sales increased 1.6%. The company’s CTD operation, now reduced to 22 stores from 31 last year following Competition and Markets Authority-mandated disposals, delivered like-for-like growth of 4.7%.

Digital transformation continues to drive performance, with group online revenue reaching 19.7% of total sales. The fully integrated Bloomreach customer engagement platform is reducing churn, whilst a new Topps Tiles Trade App is scheduled to launch in the third quarter. A new website is also in the offing.

“The Group continued to deliver growth in Q1 across each of our existing businesses and delivered like-for-like growth in CTD stores, whilst achieving some significant milestones, including appointing an interim and permanent CFO, closing the CMA process with CTD and acquiring Fired Earth assets,” said Alex Jensen, Topps Group CEO.

“We are confident of delivering another year of progress both strategically and financially”.

Topps Tiles shares were 4% higher at the time of writing.

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