WH Smith PLC’s (LON:SMWH) latest quarter continued its strategy of growth in travel and a managed decline on the high street.
Group like-for-like revenue dipped 1% in the 20 weeks to 18 January, with travel up 3% and UK high street down 5%.
Including the acquisition of US travel outlets Marshall Retail, completed in December, group sales rose 7%.
WH Smith has been dubbed the worst store on the high street, but the FTSE 250-listed retailer said it has still identified an extra £3mln in cost savings to wring out of it to make total savings of £12mln this year.
Total revenue at the high street outlets was down 5%, but in line with the strategy gross margin was better than expected.
“Looking ahead, we are on track for the current year and as we continue to grow our share of the global travel retail market, the group is well positioned for the years ahead,” said chief executive Carl Cowling in a release.
Analysts at Peel Hunt said the update completed their confidence in WH Smith's growth story.
"This is a solid effort from the high street business, good LFL from the core travel side and a pleasing strike rate of airport contract wins from the US pitching team," they said in a release.
Shares eased 1.5% to 2,536p on Wednesday morning.
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