WH Smith, WH Smith profits drop

Manufacturing News, Source : TheManufacturer.com
Published : 17 Apr 2002 9:29
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High Street book and magazine chain WH Smith has announced that its half year profits have fallen by more than a third to £63m.

The company said trading had been good over the last six months, except in the USA where the effects of September 11th had cost it £27m.

The economic slowdown following the 11 September attacks led to a collapse in sales in the company's US travel unit, which accounts for 10 per cent of its turnover.

Since 11 September, WH Smith has closed 19 of its 393 hotel outlets. Its 180 airport branches have fared better in recent weeks, with travel starting to pick up again and rents having been renegotiated with airport operators.

A statement issued by the company said: "Trading in the U.S. travel retail business continues to be difficult following the September 11 terrorist attacks, although sales trend are gradually improving."

 

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