GERMANY: Metro reports strong Christmas sales in Germany | Progresiv
German retailer Metro reported a strong performance at its core businesses in Germany during the Christmas period, helping make up for falling sales in Russia. 
Like-for-like sales in its October-to-December fiscal first quarter rose 0.1 percent but fell 1.5 percent to 17.1 billion euros due to the impact of a weaker Russian rouble and the disposal of businesses in Denmark, Greece and Vietnam.
Metro said it had a "very good Christmas business" in Germany, with like-for-like sales up 2.1 percent in December.
It confirmed the group's full-year forecast, which foresees a slight rise in overall sales and earnings before interest and tax (EBIT), excluding special items.
Overall German retail sales rose 2.8 percent in real terms from January to November 2015, the biggest rise since records began in 1994, and consumption is expected to remain a driver of growth for Europe's biggest economy due to record-high employment.
Metro shares were up 2.7 percent at 0831 GMT, outperforming a 1.3 percent rise for the European retail index.
"These are solid results for Metro," said Bernstein analyst Bruno Monteyne, who noted the quarter accounts for about 29 percent of Metro's sales and about 58 percent of profit.
Europe's fourth-biggest retailer is emerging from several years of restructuring and disposals including the recent sale of its Kaufhof department stores and its cash and carry business in Vietnam.
It is now focusing on its cash-and-carry and Media-Saturn consumer electronics businesses, where first-quarter sales rose 0.2 percent and 0.4 percent, respectively, on a like-for-like basis.
Metro said Media-Saturn sales in Russia fell "considerably" but were offset by double-digit growth in countries such as Turkey and a robust performance in Germany.
It said its cash-and-carry business in Russia "cemented its position" in a difficult environment although sales fell from a year earlier when that had been boosted by consumers bringing purchases forward due to a falling rouble.
Metro's Real hypermarkets still face fierce competition from discounters such as Aldi and Lidl, falling food prices and a shift away from out-of-town shopping. They reported a fall in like-for-like sales of 1.6 percent in the quarter.
