LONDON (AP) — Tesco PLC, the British-based grocer rolling out a series of stores across the US, reported a 12.3-percent rise in full-year net profit yesterday, cheering investors amid an otherwise gloomy retail market.

Tesco also hit back at critics of its US operations, saying its Fresh & Easy Neighbourhood Market food convenience business has been well received by customers and is growing strongly.

Tesco, which is Britain's dominant supermarket chain and owns more than 2,800 stores in 12 countries, posted net profit of £2.12 billion ($4.2 billion) in the year to February 23, up from £1.89 billion in the previous corresponding year.

Sales rose 10.9 percent to £47.3 billion ($93.4 billion).

Tesco said sales in the current financial year had so far proved resilient to an anticipated economic downturn, with revenue up by more than 13 percent across the group over the first five weeks.

"We begin the new financial year confidently — with a good start in the UK, excellent progress in our established international markets and promising early performance from our investments in future growth, particularly in the US, China and Turkey," chief executive Terry Leahy said.

Tesco has opened 59 Fresh & Easy stores in California, Nevada and Arizona since early November.

Some analysts have suggested in recent weeks that the stores are trading poorly because of inventory problems, speculation that was heightened by an announcement from the company earlier this month that it will delay opening any more stores for three months.

Tesco said at the time it intended to use the pre-planned break to smooth out unspecified problems at existing US stores.

"Whilst it is still early days, the response of customers to our offer has surpassed our expectations with our research regularly confirming that they like the quality and freshness of our ranges, as well as the prices and the convenient locations of the stores," the company said yesterday.

It did not provide separate sales figures for the fledgling operation, saying more details on US trading would be provided when interim financial results are released later this year.

Analysts said that Tuesday's results had negated much of the criticism and shares in the company jumped 7.3 percent to close at 419.50 pence ($8.23).

"Tesco have coming storming back after all the recent criticism, with strong vibes about trading in both the U.K. and the U.S. and their up-to-date property valuation," Pali International analyst Nick Bubb said.