Marks & Spencer has said steps to resolve last year's "self-inflicted injuries" were paying off with a smaller than expected fall in sales.
Sir Stuart Rose, chairman of the retail giant, admitted the group had made mistakes with its food offering in particular, but said actions to cut prices had helped stem the sales decline to 4.2% in its fourth quarter.
Experts had been expecting a like-for-like sales plunge as much as 7%.
The M&S boss gave hope for Britain's battered high street, saying conditions had stopped deteriorating.
"It's tough out there, but it hasn't got any worse," he said. "People have to eat and also want to have a bit of fun - they want to be cheered up," he added.
M&S - often seen as a bellwether for the wider retail sector - saw the decline in like-for-like food sales ease to 3.7% in the 13 weeks to March 28, from a drop of 8.9% the previous quarter.
Promotions such as its Dine in for £10 offer helped, led by recently appointed food director John Dixon, promoted to replace Steven Esom amid last year's sliding sales.
General merchandise, which includes clothing, also put in a better performance, down 4.8% in the three months.
Shares rose more than 11% after the figures pleased investors. But the sales cheer is not expected to save M&S from a sharp drop in full-year profits - forecast to plunge to £592 million from more than £1 billion the year before.
M&S has suffered badly as cash-strapped customers have defected to cheaper rivals. A dire Christmas saw like-for-like sales drop 7.1% in the third quarter, representing its worst trading for almost a decade.
