24th Jan 2006 07:00
Smith WH PLC24 January 2006 WH SMITH PLC CHRISTMAS TRADING STATEMENT Performance in line with expectations; progress continues WH Smith PLC is today providing an update on its Christmas trading performancefor the 7 weeks to 21 January 2006 and the 21 weeks to 21 January 2006. Overview We expected the Christmas trading period to be challenging for sales, but ourfocus has remained on Group profitability, which has improved year on year inline with our expectations. This performance has been driven by the continuedimplementation of the High Street Retail recovery plan, resulting in stronggross margins from mix changes and tight cost control. Travel Retail continuedits strong performance and News Distribution made steady progress. Retail Total Retail like for like (LFL) sales were down 5% for the 7 and 21 weeks. In High Street Retail LFL sales for the 7 and 21 weeks were down 6%, howevergross margin improved by around 250 basis points due to mix management, betterbuying and Far East sourcing, and markdown management. In Travel Retail, LFL sales for the 7 and 21 weeks were up 3%, accompanied by animprovement in gross margin of around 100 basis points. News Distribution In the 21 weeks to 21 January 2006, LFL sales for WHSmith News were down 2% asthe monthly magazine and part-work markets remained subdued. We expect our focuson customer service and cost efficiency to continue to deliver a strongfinancial and operational performance. Commenting on the Group's performance, Kate Swann, Group Chief Executive said: "The Christmas trading period was as challenging and competitive in our marketsas anticipated. Our strategy to focus on the bottom line has resulted in bettermargin performance and improved profitability. The top line improved in ourTravel Retail business, and while like for like sales were down in our HighStreet stores, this reflected the challenging environment and our commitment todrive profits rather than sell product unprofitably. "Looking ahead, we remain cautious about consumer spending and our plans reflectthis." -ENDS- Enquiries: WH Smith PLCLouise Evans Media Relations 020 7851 8850Mark Boyle Investor Relations 020 7851 8820 BrunswickTom Buchanan 020 7404 5959Pam Small Advance Notice of Results WH Smith PLC will announce its Interim Results 2006 on Thursday, 13 April 2006.All future results will be prepared on an IFRS basis. Notes to Editors WHSmith's best selling titles by volume over the Christmas period were asfollows: BooksSharon Osbourne ExtremeGloria Hunniford Next to YouJamie Oliver Jamie's ItalyJohn Grisham The BrokerJeremy Clarkson The World According to Clarkson DVD MadagascarCharlie and the Chocolate FactoryWar of the WorldsJeremy Clarkson: Heaven and HellPeter Kay Live at the Manchester Arena Music Now 62 VariousIl Divo AncoraWestlife Face to FaceRobbie Williams Intensive CareTake That Ultimate Collection Magazines Radio Times (Xmas London)OK!Radio Times (Xmas South)Shoot Out Trading Cards 2005TV Times (Xmas England) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Wh Smith