However, profits still met expectations, as the retailer managed to avoid discounts and so increased its profit margins. However, on current trading, group chief executive Kate Swann warned: 'We remain cautious about consumer spending and our plans reflect this.'
In high street retail like-for-like sales for the seven- and 21-week period to January 21 were down 6 per cent. However, gross margin improved by about 250 basis points as a result of mix management, better buying and Far East sourcing and markdown management.
In travel retail, same-store sales for the seven- and 21-week period were up 3 per cent, accompanied by an improvement in gross margin of about 100 basis points.
In the 21 weeks to January 21, like-for-like sales for WHSmith News were down 2 per cent, as the monthly magazine and part-work markets remained subdued. The company said it expects its 'focus on customer service and cost efficiency to continue to deliver a strong financial and operational performance'.
Swann added: 'The Christmas trading period was as challenging and competitive in our markets as anticipated. Our strategy to focus on the bottom line has resulted in better margin performance and improved profitability. The top line improved in our travel retail business and, while like-for-like sales were down in our high street stores, this reflected the challenging environment and our commitment to drive profits rather than sell product unprofitably.'
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