11th Jun 2014 07:43
LONDON (Alliance News) - WH Smith PLC Wednesday said group sales were flat in its 14-week third quarter and down only 2% on a like-for-like basis, as the company continued to keep a tight lid on costs and stem the decline of sales.
The stationer and bookseller chain, which operates stores predominantly on the high street and in airports and train stations, said that group sales were flat in the 14 weeks to June 7, which compares to a 5% decline the prior year. Like-for-like sales across the group fell by 2%, compared with a 6% fall the prior year.
"We continue to make progress in both our travel and high street businesses and remain confident in the outcome for the full year," WH Smith said in a statement.
Divisionally, sales from WH Smith's high-street stores continue to decline, both in total sales and on a like-for-like basis. In the 14 week period, high-street sales were down 4% both for total sales and on a like-for-like basis. In the same period a year earlier, high-street total sales were down 8%, and like-for-like sales were down 7%.
WH Smith said that gross margins for the high-street business continue to increase, as cost savings were delivered in line with plan.
Total travel sales on the other hand were up 4% in the period, and were flat on a like-for-like basis, which WH Smith said was supported by a continuing improvement in sales trends. For the same period a year earlier, travel total sales were flat, and down 4% on a like-for-like basis.
"Our new store opening programme, both in the UK and internationally, is progressing well and we saw gross margin improvement," the company said in a statement.
WH Smith said its financial position remains in line with market expectations, and its balance sheet remains strong.
"We continue to generate high levels of cash from our operations," it said.
The company announced that it has agreed a new five-year committed revolving credit working capital facility of GBP93.3 million, which it said will expire in June 2019. It said the facility is being provided equally by its four relationship banks: Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC and Santander UK PLC.
WH Smith shares were trading 0.6% higher at 1,100.26 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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