WH Smith PLC Trading Statement (7134C)
24 January 2018 - 6:00PM
UK Regulatory
TIDMSMWH
RNS Number : 7134C
WH Smith PLC
24 January 2018
24 January 2018
WH SMITH PLC
Trading update for the 20 week period to 20 January 2018
Continued good performance across the Group
Commenting on today's announcement, Stephen Clarke, Group Chief
Executive said:
"The Group has delivered another good performance over the 20
week period with total sales flat year on year and like-for-like
sales down 1%, against a very successful period last year.
"Our Travel business now accounts for almost two thirds of the
Group's annual profit and we continue to deliver strong sales
growth across all our key channels. This was driven by ongoing
investment in the business and continued growth in passenger
numbers in our airport stores over the Christmas period. Our
recently opened new concept store in Gatwick South has performed
particularly well and is ahead of plan.
"High Street sales were in line with expectations. Our
stationery and seasonal ranges, including cards and wrap, performed
well with good sales growth versus last year. Book sales were more
challenging due to the decline in spoof humour titles and no new,
big publishing trends.
"I would like to take this opportunity to thank our 14,000
colleagues across the Group for their hard work over this busy
period. Without their ongoing support we would not be able to
achieve these results.
"Looking ahead, while there is some uncertainty in the broader
economic environment, we remain confident that the Group is well
positioned for the year ahead as we continue to focus on profitable
growth, cash generation and investing in new opportunities."
Trading update
The Group delivered a good performance in the period with total
sales flat year on year and like-for-like sales down 1% for the 20
weeks.
Total sales in Travel were up 7% with like-for-like sales up 3%.
We have continued to see good sales growth across all of our key
channels and gross margin continues to grow in line with plan
driven by category mix management. Our store opening programme in
the UK is on track and we expect to open around 15 new units this
year. Our new large airport stores in Gatwick and Stansted opened
in the period and are performing well with good feedback from both
landlords and customers.
Our International business continues to grow and we now have 249
units open, including 2 of the 10 units we have won in Changi
Airport, Singapore. We expect all 10 units there to be open this
spring.
In High Street, total sales were down 5% with like-for-like
sales down 4%, in line with expectations. Gross margin was up year
on year although slightly less than anticipated, in part reflecting
the lower sales of high margin spoof humour books compared to the
same period last year when humour books had a particularly strong
performance. However, we continue with our cost efficiency
programme and now expect full year cost savings to be in the region
of GBP12m, slightly ahead of target.
(1) Like-for-like sales are calculated on stores with similar
selling space that have been open for more than a year (constant
currency basis)
Enquiries:
WH Smith PLC
Nicola Hillman Media Relations 020 7406 6350
Mark Boyle Investor Relations 020 7406 6320
Brunswick
Fiona Micallef-Eynaud / Cerith Evans 020 7404 5959
Advance Notice of Interim Results
WH Smith PLC will announce its Interim Results 2018 on Thursday
12 April 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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