Swindon-based retailer WH Smith today said its decision to cut cost and improve gross margins instead of chasing sales had paid off.
But it warned that the high street remained a tough market with no immediate improvement likely.
In an interim management statement, the book, newspaper and stationery seller, said total group sales fell by 1% between February 27 to July 2 with like-for-like sales down 4% compared to the same period last year.
Sales at WHSmith Travel rose 2% and but at a like-for-like level 2% lower.
Sales in its high street outlets fell by 3% (4% at a like-for-like level) although gross margins continued to grow and cost savings had been delivered in line with plan.
"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 group said.
WH Smith trades from over 580 high street stores and more than 530 outlets at airports, train stations, hospitals, motorway service stations and work places.
Chief executive Kate Swann has cut costs and improved gross margins by focusing on more profitable products, better sourcing and better control of markdowns.
She has also moved product mix away from CDs and DVDs towards higher-margin items such as stationery.
