WH Smith on target for full year, focus on margins

22nd Aug 2013 07:10

Newsagent chain WH Smith said it expects full year results to be in line with market expectations as it continues focus on tight cost control and improving margins.In an update ahead of its results for the year ending August 31st due in October, the newsagent and bookseller said focus on gross margin gains and tight cost control continues at its High Street business. It enjoyed a solid performance despite the relatively strong publishing schedule in the second half of the prior year, helped by bumper sales of Fifty Shades of Grey. Meanwhile its Travel business, which has stores in railway stations and airports, continued a solid performance after it won new business in both the UK and international travel markets, it said.In June WH Smith warned that like-for-like (LFL) sales fell 6% year on year across the group for the 14 weeks to June 8th, prompting analysts to question how long the retailer could continue with falling sales as it executes its turnaround plan. Both businesses remain highly cash generative, it said.CJ