Books and stationary retailer WH Smith has reported that its sales in the first 10 weeks of the financial year were down 3%, with like-for-like sales (LFL) down 6% compared to the same period last year.
Sales at WH Smith Travel - which has outlets in airports, train stations and motorway services, etc. - were flat, while LFL sales were down 4%, while the gross margin is said to have improved.
However, sales on the High Street - the group's other division - fell 5% in the period, down 6% on a LFL basis. "We continue to focus on delivering our strategy to rebalance the mix of our business towards our core categories. We have made further progress on gross margin and costs continue to be tightly managed," the firm said.
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Nevertheless, the group was keen to emphasise that its financial position is in line with market expectations.
"Whilst the current climate continues to be challenging, we remain a resilient business and are well positioned for continued profitable growth."
The company has purchased around 0.3m shares to date at an average price of 485p to enable it to return up to £50m of cash to shareholders via a rolling share buyback programme.
The share price fell 5.82% to 518p by 12:55.
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