WH Smith reports weak Christmas sales, margins improve

22nd Jan 2014 07:36

- Sales over Christmas fall - Margins improve, tight cost control- Confident of progress in year aheadBooks and stationery retailer WH Smith said sales fell over the key Christmas period, adding that it continued to plan cautiously and manage the business tightly. Total sales were down 4% for the 20 weeks to January 18th 2014 with like-for-like (LFL) also down 4%.In Travel, total sales rose 2% with LFL sales falling 1%, reflecting a recent improvement in sales trends, particularly in air. "We saw further improvement in gross margin and our store opening programme continues to progress well, with further opportunities for growth identified in both the UK and internationally," the group said.High Street performed in line with company expectations, with total sales down 7% and LFL sales down 6% as it managed costs tightly.Chief Executive Stephen Clarke said: "Looking ahead, we continue to plan cautiously and manage the business tightly while investing in new opportunities for future growth. We are confident in making further progress in the year."CJ