WH Smith Plc (SMWH) Ordinary 22 6/67p shares
HL comment (21 January 2015)
"The Group delivered a good performance in the period with profit growth in line with plan. Total Group sales were down 1% with like-for-like (LFL) sales down 2%.
In Travel, total sales were up 7% with LFL sales up 2%, with an improvement across all channels, particularly large airports. Gross margin continues to grow driven by category mix management. We continue to invest in growing the business by opening stores in the UK and internationally.
In High Street, total sales were down 5% with LFL sales also down 5%, in line with plan. Our initiatives to grow gross margin continue to deliver and our cost efficiency programme remains on target.
The Group continues to be highly cash generative with a strong balance sheet."
Read more share research from Hargreaves Lansdown
Commenting on today's announcement, Stephen Clarke, Group CEO said:
"The Group delivered another good profit performance. Travel continues to benefit from the ongoing improvement in passenger numbers and the impact of our latest initiatives. In High Street, our strategy to create value through gross margin improvements and cost efficiencies continues to deliver profitable growth.
It is important to recognise that this performance would not be possible without the hard work of all our colleagues, particularly those in our stores at this time of year.
Looking forward, we remain focused on profitable growth, cash generation and investment in new opportunities and are confident of making further progress."
Register to receive WH Smith share research updates direct to your inbox for free
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.
The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation.
Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close to the mid-price or declared late are labelled 'N/A'.