MARKET TALK: WH Smith Update Shows Weak LFL Result

8th Jun 2010 07:46

0646 GMT [Dow Jones] WH Smith (SMWH.LN) trading update shows total group sales -3%, with like-for-like sales -4%, compared to the same period last year. Arden Partners' analyst Nick Bubb was looking for -3 LFL, "so the -4 is marginally worse, but not disastrously so." He says the company has turnover rents in airports, "so they have some protection from lost business, whilst the high street LFL is always down as they engineer a richer gross margin sales mix." He says it does not look like profit forecasts will change, "but I am above consensus and will probably edge down. Still cheap long term." Has a buy rating and 600p target. Shares closed at 454p Monday. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 08, 2010 02:46 ET (06:46 GMT)