WH Smith reports flat start to the new financial year

WH Smith’s like-for-like (LFL) sales dropped 1% in the first 10 weeks of its financial year, reflecting the poor performance of high street stores.

The British stationary and books retailer said high street LFL sales declined 4%, offsetting a 2% increase in its travel division, which includes stores at airports and railway stations.

The group added that gross margins increased in line with expectations and cost saving initiatives were on track.

Following its October announcement that it intends to return up to £50m of cash to shareholders via a rolling share buyback programme, the firm as of 11 November purchased 0.6m shares and returned £6.1m to shareholders.

“The new financial year has started well however the peak trading periods for both businesses are ahead of us,” the business said.

“We remain focused on profitable growth, cash generation and investment in new opportunities.”