Margins improve at WH Smith

WH Smith, the High Street and travel hub newsagent chain, saw like-for-like sales dip at the start of the second half of its financial year.

Total group sales in the 15 week period from February 26th to June 9th were down 1% on a year earlier, with like-for-like (LFL) sales off 3%.

The firm's Travel division saw sales rise 1% overall but dip 3% on a LFL basis. The division's gross margin improved, with management keeping a tight rein on costs.

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WH Smith's High Street shops saw sales ease 3% overall and fall 4% on a LFL basis. Gross margins in this division continue to grow and cost savings have been delivered in line with management projections.

"The economic environment remains uncertain and whilst we continue to be cautious about consumer spending, we remain confident in the outcome for the full year," the company said.

JH