The Bookseller.com

4th July 2008

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Book sales up 2% at WHS

31.01.08 Graeme Neill

Book sales at W H Smith rose by 2% over Christmas, according to a top retail analyst. This morning, WHS revealed a 3% drop in like-for-like sales at its high street chain over Christmas. However, Nick Bubb, an analyst at Pali International, said that in a conference call with analysts, WHS said its book sales were up 2% like-for-like, with gross margins about 40 basis points up.

Bubb described it as a "good performance", with c.e.o. Kate Swann delivering "a good sales/margin trade off over Christmas".

In the 10 weeks to 26th January, WHS said that sales dropped at the high street chain reflecting its "ongoing strategy to rebalance the mix of business in this division". In a statement it said that its gross margin continued to improve year-on-year, after "successfully" controlling costs. It refused to break down its numbers further.

Bubb reiterated his view that WHS could be an acquisition target, "given the value of its travel division (and the lucrative airport shops in particular)". He said that the retailer's management "may yet look at separating this off themselves from the high street chain, to boost shareholder value".

Retail W H Smith kate swann Graeme Neill Christmas Nick Bubb