WH Smith toughs it out
For the 7 weeks to 21 January 2006 and the 21 weeks to 21 January 2006 total retail like for like sales were down 5%.
In High Street Retail like for like sales for the 7 and 21 weeks were down 6%, however gross margin improved by around 250 basis points due to mix management, better buying and Far East sourcing, and markdown management.
In Travel Retail, like for like sales for the 7 and 21 weeks were up 3%, accompanied by an improvement in gross margin of around 100 basis points.
Commenting on the Group’s performance, Kate Swann, Group Chief Executive said, “The Christmas trading period was as challenging and competitive in our markets as anticipated. Our strategy to focus on the bottom line has resulted in better margin performance and improved profitability. The top line improved in our Travel Retail business, and while like for like sales were down in our High Street stores, this reflected the challenging environment and our commitment to drive profits rather than sell product unprofitably”.
“Looking ahead, we remain cautious about consumer spending and our plans reflect this.”
