WHSmith said its high street division had traded in line with expectations over the golden quarter despite another weak performance as it sounds out prospective buyers.
The high street stalwart, which has been put up for sale, recorded a 6% fall in sales on a constant currency basis during the 21 weeks to 25 January. On a like-for-like basis, revenue slipped 3%.
The retailer said the business, which accounts for 15% of the group’s profits, exited the Christmas period with a clean stock position and is on track to deliver full-year cost savings of £11m.
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Total group sales rose 4% on a constant currency basis during the quarter, boosted by an 8% jump in sales in its travel arm and 6% on a like-for-like basis.
WHSmith attributed the strong growth to the roll out of its one-stop-shop for travel essentials format and “good results” from its new food and extended health and beauty ranges.
It reported a 6% rise in sales in its North America business, driven by a 20% surge in its Travel Essentials sub-division. This helped to offset a weaker but improving performance across its Resorts and InMotion arms, which both fell 5% and 9% respectively.
The retailer’s chief executive Carl Cowling said: “The group has had a good start to the financial year, and we continue to see strong momentum across our core Travel business.
“Our UK Travel business has delivered another excellent performance across all channels, as we continue to make good progress with the rollout of our one-stop-shop for travel essentials format.
“The group is in a strong position, and while there is some economic uncertainty, we are confident of another year of good growth in 2025.”
WHSmith confirmed at the start of the week that it was “exploring potential strategic options” for its high street business, including a possible sale of its 500 UK shops.
It’s understood to have caught the eye of several suitors, including Bensons for Bed owner Alteri, Hobbycraft owner Modella Capital and HMV owner Doug Putman.
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