Smiths’ sales brought to book by downturn in air travel

Less busy airports as people cut back on holidays and business travel have made life tough for books, newspaper and stationery retailer WH Smith.

But the company said today that, despite a fall in sales, it reckons it is beating competitors in the departure lounges.

The group said total sales for the three months to the end of May had risen by 1%, while like-for-like sales were down by 4%.

That was marginally better than the 5% fall in like-for-like sales Smiths reported in the first half of the year.

On the High Street, like-for-likes improved from a 6% fall in the first half to a 5% fall in the third quarter, while travel outlets moved from a 1% decline to a 2% fall in the latest quarter.

Smiths said: "The economic environment remains uncertain and, whilst we continue to be cautious about consumer spending, we are confident about the outcome for the year.

Analysts expect profits for the year to August to rise from £74 million to around £80 million.

"Smiths' numbers are pretty robust with High Street sales marginally better than we expected, but airport demand is proving to be tough," said KBC retail analyst John Stevenson.

"Smiths is one of the few retailers we expect to deliver profit growth this year because there are still cost savings to come through."