Share Dealing
‘Resilient’ Christmas trading boosts profits at WH Smith
Ellie Duncan, 26 January 2012
WH Smith has reported profit growth in line with expectations over Christmas despite having reduced its reliance on festive trading.
The retailer revealed that a ‘resilient’ performance for the 21 weeks to 21 January 2012 saw group total sales down 3 per cent, with like-for-like sales down 5 per cent over the period.
In its travel division, total sales rose 2 per cent, while like-for-like sales fell by 3 per cent, and there was an anticipated further improvement in gross margin.
WH Smith’s high street stores suffered a slightly larger decline in sales, with like-for-like sales down 6 per cent for the 21 weeks.
Group chief executive Kate Swann said that gross margin was in line and that costs had been ‘tightly controlled’.
She commented, ‘Over the past six years both businesses have consistently increased profits and the group is now well balanced between travel and high street.
‘As a result of this, the months of November and December now represent less than half of annual group profit compared to over 90 per cent of group profit six years ago.’
The group confirmed that its new store opening programme remained on track.
Swann said that she expects the trading environment to remain challenging but added that the group had ‘planned accordingly’.
She was appointed to the role of chief executive at the retailer in November 2003 and has since pulled the group out of CDs and DVDs sales and shifted the focus to stationery and books.
Shares in WH Smith were down just 0.09 per cent on the news to 553,50p at 10.03am.
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