LONDON (AP) — Marks & Spencer Group PLC, Britain's largest clothing retailer, yesterday reported that fourth quarter sales rose 1.9 percent despite a drop of 4.2 percent in its home market.

The company said gross sales in Britain were down 0.3 percent in the 13 weeks ending March 31 compared to a year earlier; food sales rose 0.4 percent but general merchandise sales fell 1.2 percent.

Sales outside Britain rose 23 percent, the company said.

Philip Dorgan, analyst at Panmure Gordon Ltd., said the report was "a lot better" than consensus.

"The market has therefore been right to focus on the upside post recession, rather than worry about the short term effects of the economy upon profits," Dorgan said.

Marks & Spencer, which has a store in Bermuda, saw its shares rise 9 percent to 288.5 pence ($4.12) on the London Stock Exchange.

"After criticism of misguided offerings, along with the company's own admission of strategic mistakes, the turnaround seems to have begun," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.

However, Stuart Rose, the company's executive chairman, said the market remained difficult. "It hasn't got any worse, but certainly hasn't got any better," he said.

Sam Hart, analyst at Charles Stanley & Co., was also more cautious about the figures, which he called "less weak than expected," and worried about the longer term.

"2009/10 is likely to represent the earnings trough for M&S, but considerable uncertainty remains over the likely pace of earnings recovery, given ongoing structural change in both the general and food retail segments," Hart said in a research note.

"We also believe that concerns over the group's pension fund deficit are likely to grow without a swift recovery in equity markets or rise in bond yields."

Results of a triennial review of the pension fund are expected to be disclosed toward the end of the year, Hart said.

In November, Marks & Spencer reported a 43 percent fall in net profit to £223 million ($319 million) for the first half of the year. The company announced in January that it would close 27 stores in a cost-cutting drive.

The company will publish full-year results on May 19.