Ailing British magazine and book seller WH Smith said today its profitability had improved, despite falling sales, as it cut back on promotions and kept a tight rein on costs.
The company said total retail sales were down 1 per cent in the 6 weeks to January 15th.
"This sales performance reflects our planned focus on margin improvement, in particular not chasing unprofitable sales, and the difficult trading environment," WH Smith said in a statement.
The firm, where Christmas accounts for more than 70 per cent of annual profits, had a disastrous holiday season the previous year, when it cut prices in an attempt to lure more customers.
The plan backfired when sales stayed flat and the lower prices slashed profitability, with gross margins falling 2 percentage points, leading the group to warn annual profits would fall short of forecasts.
WH Smith is struggling to compete with online retailers such as Amazon.com, book specialists and supermarkets who have started selling some of its core products such as magazines, stationery and CDs.