21st Jan 2015 07:36
LONDON (Alliance News) - WH Smith PLC on Wednesday reported a fall in group and like-for-like sales in the 20 weeks to January 17, though it said it is performing in line with its expectations.
The FTSE 250-listed retailer said total group sales for the 20 weeks fell 1%, with like-for-like sales declining 2%.
In its Travel business, total sales rose 7% and like-for-like sales were up 2% on the back of an improvement in all channels, particularly in its large airport concessions. Gross margins in the Travel arm were improving owing to category mix, WH Smith said.
But sales in its High Street business dropped 5% in total and 5% on a like-for-like basis, which the company said it in line with its expectations. It said it remains on target with its plans to improve its High Street gross margin and to cut costs in the division.
"The group delivered another good profit performance. Travel continues to benefit from the ongoing improvement in passenger numbers and the impact of our latest initiatives. In High Street, our strategy to create value through gross margin improvements and cost efficiencies continues to deliver profitable growth," said WH Smith Chief Executive Stephen Clarke.
"Looking forward, we remain focused on profitable growth, cash generation and investment in new opportunities and are confident of making further progress," Clarke added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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