The supermarket said that performance of non-food categories had accelerated in line with its plans over the period.
Chief executive Justin King said: "Growth is being driven by the continued development of product ranges and their introduction into new stores and store extensions. We had a strong Christmas gift offer, our first to be sourced direct by our in-house team. We had significant sales growth in homeware, toys, electrical, entertainment and clothing."
King added that the supermarket had achieved its goal set in March 2005 to add £2.5 billion in sales since the end of the third quarter.
He said: "We are pleased to report like-for-like sales growth of 3.7% for the third quarter. This is a good result for the Christmas period, and is particularly pleasing given the level of competition during this period. We have now completed 12 consecutive quarters of like-for-like sales growth ahead of our expectations."