WH Smith (LON:SMWH) reported that total sales in the 21 weeks to 22 January declined 4% and like for likes dropped 5%, which it nevertheless called a “solid trading performance in challenging weather conditions”.
The group also announced that it has agreed a new five year committed revolving credit working capital facility of £70 million, equally provided by Barclays (LON:BARC), Lloyds (LON:LLOY) and Santander UK PLC and maturing on 24 January 2016.
The update was met with a calm reaction in the markets with the FTSE 250 retailer’s shares rising marginally in early deals.
WH Smith also said that gross margin improved ahead of expectations with costs “tightly managed to reflect the trading conditions”.
“During the period we saw a resilient performance across both our High Street and Travel divisions, despite challenging weather conditions.
“With gross margin ahead of plan and costs tightly controlled, overall performance for the period was in line with expectations.
“Looking ahead, we expect the trading environment to remain challenging and we have planned accordingly,” said chief executive of WH Smith Kate Swann.