LONDON, (Reuters) –Tesco, Britain’s largest retailer, raised its profit outlook on Thursday. It reported a rise of Christmas sales despite a difficult comparison with 2020, when spending was boosted through a COVID-19 locking down.

The company reported that UK similar-forlike sales increased 0.2% year-on–year during its third quarter ended Nov. 27, while they were up 0.3% in the six weeks ending Jan. 8.

Tesco (OTC), a company that has seen stronger sales than anticipated, now anticipates full-year 2021-22 revenue operating at “a little above” its 2.5-2.6 billion pound ($3.43-3.77 billion) peak.

Tesco’s profit increase follows the one received from Sainsbury’s rival on Wednesday, and there are bullish updates for this week’s UK arm of German discounters Aldi or Lidl.

When Christmas 2020 was locked down, UK supermarkets had to make tough comparisons with the boom in food and beverage sales.

Even though Christmas 2021 restrictions were more severe than those for 2018, supermarkets still benefitted from the consumer panic over Omicron’s spread, which prevented them from eating in bars or restaurants.

Tesco (which has nearly 28% of Britain’s grocery markets) reported that third quarter UK like for like sales increased 6.9% over the previous period in 2019-20. This was before the pandemic. On the same basis, sales for the six weeks prior to Christmas were 8.8% higher.

It claimed it outperformed market conditions and gained market share.

Tesco predicted full-year operating income for its bank of between 160mln and 200mln pounds. This is due to more favorable economic outlooks on the provision for credit losses.

($1 = 0.7291 pounds)