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WH Smith has reported a total like-for-like sales decrease of 5% in the last quarter but said its "balance sheet remains strong", as chief executive Kate Swann prepares to step down after nine years at the chain.
In its interim financial statement for the 14 weeks to 8th June, WH Smith said sales at its high street stores had dropped by as much as 8% like-for-like, while total sales were down 7% in comparison to last year, which the company attributed to the "strong publishing schedule" in 2012. For its high street operation, "gross margins continue to increase and cost savings have been delivered in line with plan," WH Smith said.
The Travel arm performed better than the high street business, as usual, reporting total sales at the business were flat for the last quarter, while like-for-like sales were down 4% in the period. WH Smith said its new store opening programme in the UK and internationally was "progressing well."
"We confirm that our financial position is in line with market expectations and our balance sheet remains strong. We continue to generate high levels of cash from our operations,' WH Smith said. The statement continued "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."
Kate Swann, WH Smith c.e.o, is due to step down at the end of the month after nine years at the chain. She will hand over to Stephen Clarke, currently managing director of WH Smith High Street.