Shares in the UK's largest supermarket jumped more than 7% on the news.
But Tesco reported a 1.5% fall in sales for the 13 weeks ending 28 November after scrapping its "£5 off £40" promotion held in 2014.
Mr Lewis said in a statement: "Our Christmas performance was strong... There is plenty more to do, but we are making progress and are trading in line with profit expectations for the full year."
Tesco shares jumped almost 5% to 166p, after today's trading update.
The figures follow sales updates this week from Morrisons and Sainsbury's that were received positively by investors.
Price cuts