Sales down, profits up at WHSmith

Friday, 17 October 2014 Books+Publishing

UK book chain WHSmith has recorded a 9% year-to-year rise in pre-tax profits in its annual results for the year ending 31 August, reports the Bookseller. The chain’s travel stores had a ‘record year’ profit, increasing 11%, while profits at its High Street stores increased 4%. WHSmith CEO Stephen Clarke said the results demonstrate ‘the continued success of our profit focused strategy’. The chain achieved a rise in profit despite falling sales by removing £14m (A$26m) in costs from its High Street stores. Sales fell 2% overall, with travel store sales up 4% and High Street store sales down 6%. The chain said the books sector ‘continues to be challenging’, with ‘the quality of publishing still the biggest driver of market performance’. Nonfiction and children’s books made up 75% of book sales, while the ebook market continues to grow for the company, but at a slowing rate. WHSmith also announced it has extended its contract with Kobo until 2018, and will focus on ereading via apps on multi-function tablets.

Category: International news