Sainsbury's non-food offer showed 'good growth' as like-for-like sales at the chain rose 3.9% for the 13 weeks to January 3.
Total sales rose 4.8% over the period and chief executive Justin King said that the product mix and promotional offers helped the retailer have its best ever Christmas performance.
He said: "Our non-food ranges continued to show good growth over the quarter. We had a strong non-food Christmas range and held a number of promotional events in the lead up to Christmas.
"We continue to be delighted with the performance of Tu, our own-brand clothing range, and are now the eighth largest retailer by volume in the UK clothing market with 2.3% market share".
King said the retailer had its best ever Christmas performance including the company's busiest trading on December 23.
Sainsbury's also had its highest ever trading performances for Christmas Eve and New Year's Eve.
King added: "The economic environment remains particularly challenging and we expect this to continue in 2009, however our continued investment in price and promotions along with universal appeal and a wide customer base means we are well positioned to continue our good progress."