WH Smith high street sales down, but "in line with plan"

WH Smith shares were down after it reported a decrease of 2% in like-for-like sales during the last 20 weeks.

Despite an increase of like-for-like sales in its travel division of 2%, high street sales were down 5%, which was in line with its plan.

However, the FTSE 250 retailer said its gross margins continued to grow and it continued to invest in new stores in the UK and overseas.

Chief executive Stephen Clarke said: "In high street, our strategy to create value through gross margin improvements and cost efficiencies continues to deliver profitable growth.

“Looking forward, we remain focused on profitable growth, cash generation and investment in new opportunities and are confident of making further progress.”

Investec analysts said trading was “slightly ahead of expectations”.

“We see WH Smith as a play on international travel with a solid high street cash machine,” the broker added, giving a price target of 1,500p and a ‘buy’ recommendation.

Shares were down 1.86% to 1321p on Wednesday at 10:34.