Marks & Spencer posted a smaller-than-expected fall in fourth-quarter underlying sales, raising hopes the landmark British retailer is finally getting to grips with its problems.

The firm, which serves 21 million Britons a week from more than 600 stores, said sales at UK stores open at least a year fell 4.2 percent in the 13 weeks to March 28.

That is an improvement on the 7.1 percent drop in the third quarter and beat analysts' forecasts for a decline of between 6.5 and 7.5 percent, according to a company poll.