WH Smith weathers storm despite sales fall

THE snow bit into sales figures from WH Smith today but the stationery and books chain offset the weather misery by revealing a boost to margins.
By The Newsroom
Published 26th Jan 2011, 08:39 BST
Updated 26th Jan 2011, 08:39 BST

Like-for-like sales at its high street stores slumped seven per cent in the eight weeks to January 22, compared to a four per cent decline in the previous quarter.

At railway stations, airports and other travel hubs, the company reported a three per cent decline in the 21 weeks to the same date but accompanied this with a better than expected update on margins as it focuses on costs and more profitable stock.

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Chief executive Kate Swann described the performance of both divisions as resilient and said the company remained on track to meet expectations.

She added: "Our staff worked extremely hard during this period to maintain the best possible service for our customers."

Analysts had been expecting a five per cent like-for-like sales decline at the high street stores and a one per cent fall at travel stores in the period, but those predictions were made before the Arctic weather hit trading.

WH Smith's like-for-like sales have declined in recent months as the company moves away from lower-margin entertainment items such as CDs and DVDs and concentrates on selling its core range of confectionery and stationery.