Newsagent group WH Smith today became the latest major retailer to blame December’s big freeze for a a bigger-than-expected fall in sales over Christmas.
But profits at the Swindon-based newspaper, books and stationery seller, met forecasts and its gross margin was higher than analysts had pencilled in.
In what the group called a “resilient” performance, total sales for the 21 weeks to 22 January fell four per cent and were down five per cent on a like-for-like basis.
However it was hit hard by the pre-Christmas snow with like-for-like sales dropping a bigger-than-expected seven per cent for the eight weeks to last Saturday and six per cent for the period since the end of August.
Smith said the numbers reflected its aim of rebalancing the mix of its business towards core categories. Sales in the travel division were flat.
Chief executive Kate Swann said: “Looking ahead, we expect the trading environment to remain challenging and we have planned accordingly.”
