Like for like sales at WH Smith PLC were down six per cent for the seven weeks and the 20 weeks to 20 January 2007, but there was a sharp improvement in profit, in line with expectations.

In the High Street division, like for like sales for the 7 and 20 weeks were down 8 per cent and 9 per cent respectively, reflecting the company’s strategy to rebalance the mix of business.

Gross margin improved by around 300 basis points as a consequence of the new strategy, as well as through better buying, low cost sourcing and improved “markdown management”  - the way the company deals with the sell-off of its surplus stock. The company said it is also continuing to focus successfully on cost control.

Commenting on the Group’s performance, Kate Swann, Group chief executive said: “In a competitive period on the High Street, we continued to deliver our strategy to improve profitability. We increased the pace at which we are rebalancing the mix of our business towards our core categories. Looking ahead, we remain cautious about consumer spending in our markets and our plans reflect this.”

The company has also been boosted by it’s Travel division which continued its strong performance with good sales and margin growth. Like for like sales for the 20 weeks were up 4 per cent, accompanied by a further improvement in gross margin, driven by mix changes, improved ranges and successful promotions.