Variety high street retailer WHSmith announced in a pre-close update today that it expects the outcome for the year to August 31st 2012 to be “at the top end of market expectations”.
While the company did not reveal any trading figures for the period, it noted that its travel business is performing strongly in spite of ongoing economic difficulty, adding that this part of the company is increasing its international reach.
Managing costs tightly in order to deliver strong gross margin gains in travel, the business believes that focusing on these financial elements delivers solid results.
Earlier this year, WHSmith revealed that like-for-like (LFL) sales dropped three per cent year-on-year during its last quarter as a result of reduced store numbers, while its high street stores alone saw a four per cent LFL decline.
In its trading update this morning, the retailer made clear that it had improved its financial position, saying: “WH Smith PLC expects the outcome for the year to 31 August 2012 to be at the top end of market expectations.
“Both businesses remain highly cash generative.”