WH Smith travel sales up, High Street like-for-like down 3%

WH Smith said like-for-like sales in the 14 weeks to 4 June 2016 were flat with total group sales up 2%, and added that it was confident in the outcome for the full year.

Travel business total sales were up 9% and like-for-like sales up 3%, in line with expectations.

High Street operations reported sales in line with expectations. Total sales were down 4% and like-for-like sales down 3%. Gross margin improvement and cost savings have been delivered in line with plan.

The retailer said its performance in travel reflected its ongoing investment in the UK business and the improvement in passenger numbers.

“We made further progress actively managing our space to best meet the changing needs of our customers and landlords. Gross margin increased in line with plan. Our new store opening programme is progressing well in both the UK and internationally, where we continue to win additional new units,” WH Smith said.

“We generate high levels of cash from our operations. As of 7 June 2016, we have purchased 1.7m shares and returned to shareholders £29m of the up to £50m share buyback announced in October 2015.”

“Looking ahead we continue to focus on profitable growth, cash generation and investing in the business to position us well for the future. We remain confident in the outcome for the full year.”