Performance in line with expectations; progress continues
WH Smith PLC is today providing an update on its Christmas trading performance for the 7 weeks to 21 January 2006 and the 21 weeks to 21 January 2006.
Overview
We expected the Christmas trading period to be challenging for sales, but our focus has remained on Group profitability, which has improved year on year in line with our expectations. This performance has been driven by the continued implementation of the High Street Retail recovery plan, resulting in strong gross margins from mix changes and tight cost control. Travel Retail continued its strong performance and News Distribution made steady progress.
Retail
Total Retail like for like (LFL) sales were down 5% for the 7 and 21 weeks.
In High Street Retail LFL sales for the 7 and 21 weeks were down 6%, however gross margin improved by around 250 basis points due to mix management, better buying and Far East sourcing, and markdown management.
In Travel Retail, LFL sales for the 7 and 21 weeks were up 3%, accompanied by an improvement in gross margin of around 100 basis points.
News Distribution
In the 21 weeks to 21 January 2006, LFL sales for WHSmith News were down 2% as the monthly magazine and part-work markets remained subdued. We expect our focus on customer service and cost efficiency to continue to deliver a strong financial and operational performance.
Commenting on the Group's performance, Kate Swann, Group Chief Executive said:
"The Christmas trading period was as challenging and competitive in our markets as anticipated. Our strategy to focus on the bottom line has resulted in better margin performance and improved profitability. The top line improved in our Travel Retail business, and while like for like sales were down in our High Street stores, this reflected the challenging environment and our commitment to drive profits rather than sell product unprofitably.Looking ahead, we remain cautious about consumer spending and our plans reflect this."
Enquiries to -
Advance notice of results:
WH Smith PLC will announce its Interim Results 2006 on Thursday, 13 April 2006. All future results will be prepared on an IFRS basis.
Notes to Editors:
WHSmith's best selling titles by volume over the Christmas period were as follows:
Books
Sharon Osbourne - Extreme
Gloria Hunniford - Next to You
Jamie Oliver - Jamie's Italy
John Grisham - The Broker
Jeremy Clarkson - The World According to Clarkson
DVD
Madagascar
Charlie and the Chocolate Factory
War of the Worlds
Jeremy Clarkson: Heaven and Hell
Peter Kay Live at the Manchester Arena
Music
Now 62 - Various
Il Divo - Ancora
Westlife - Face to Face
Robbie Williams - Intensive Care
Take That - Ultimate Collection
Magazines
Radio Times (Xmas London)
OK!
Radio Times (Xmas South)
Shoot Out Trading Cards 2005
TV Times (Xmas England)