Analysts remained convinced of the merits of bookseller and stationer WHSmith following an update on Wednesday.
The retailer was characteristically cautious about the Christmas outlook, but notched up a 4 per cent rise in total sales in the 10 weeks to November 8. Like-for-like sales fell 4 per cent at high street stores but held flat at the travel division.
Pali International analyst Nick Bubb maintained his above-consensus full-year forecast of£83 million, partly because of the retailer’s strong cost control. He said: “This is a reliable, defensive story with very good visibility and a strong cash flow position.”
Dresdner Kleinwort’s Sanjay Vidyarthi, advising hold, said: “The company still has some way to go in terms of improving product mix to maximise gross margins as well as increasing conversion rates and this looks set to offset any underlying sales weakness in the short term at least.”
Pali International analyst Nick Bubb maintained his above-consensus full-year forecast of£83 million, partly because of the retailer’s strong cost control. He said: “This is a reliable, defensive story with very good visibility and a strong cash flow position.”
Dresdner Kleinwort’s Sanjay Vidyarthi, advising hold, said: “The company still has some way to go in terms of improving product mix to maximise gross margins as well as increasing conversion rates and this looks set to offset any underlying sales weakness in the short term at least.”
No comments yet