WH Smith sales down

British bookseller and stationer WH Smith Plc said trading had been competitive over Christmas and it remained cautious about consumer spending but would return £90 million pounds to shareholders.

The retailer said group like-for-like sales fell two per cent in the 21 weeks to January 26. Sales at WH Smith's high street, or town centre, stores fell three percent, but those at its airport and train station outlets rose one per cent.

Underlying high street sales had also fallen by three per cent in the 10-week period to January 26. Last November, WH Smith had said its new financial year had started as expected but it remained cautious about the consumer environment.

Group like-for-like sales had fallen by one per cent in the first 10 weeks to November 10, with those at its high street stores down by two per cent while sales at travel had grown by one per cent.

"As we anticipated, trading conditions on the high street were competitive over the Christmas period," chief executive officer Kate Swann said in a statement yesterday.

"Looking ahead, we remain cautious about consumer spending in our markets and our plans reflect this," she added.

Swann said the proposed cash return reflects the company's confidence in the cash generative nature of its business.

The cash return comprises an initial return of £60 million - equivalent to 33 pence per share - by way of a special dividend combined with a share consolidation, with the rest to be returned via an on-market share buyback programme.