Swindon-based retail giant WH Smith has shrugged off a 1% drop in sales in the 20 weeks to January 17, saying it was in line with its expectation as it focuses on profitable growth.
In a trading update to shareholders, the 1,300-store group again showed mixed fortunes for its two main divisions during the period, which included crucial Christmas sales. Sales across its core high street outlets fell by 5% while its travel business, which includes stores in airports and railways stations, maintained its growth with a 7% sales increase. 
Group like-for-like sales, which strip out new retail space, declined by 2%.
The firm, which employs 14,000 staff, said its stores in large airports had performed particularly well while gross margins in the travel business continued to grow as it monitored the mix of products in its outlets. It said it will continue to invest in growing the business by opening more stores in the UK and abroad.
It described the sales decline in its high street business as “in line with plan”, adding that its aim was to grow gross margins alongside a cost-efficiency programme, which remained on target.
The group said it continued to be highly cash generative with a strong balance sheet.
Group chief executive Stephen Clarke said the group had delivered another good profit performance.
“Travel continues to benefit from the ongoing improvement in passenger numbers and the impact of our latest initiatives,” he said.
“In high street, our strategy to create value through gross margin improvements and cost efficiencies continues to deliver profitable growth.
“Looking forward, we remain focused on profitable growth, cash generation and investment in new opportunities and are confident of making further progress.”
