Retailer WH Smith said higher profit margins offset a bigger-than-expected fall in sales over Christmas, due to disruptions caused by severe winter weather.
The 219-year-old group said today sales at town centre stores open over a year fell 7 per cent in the eight weeks to January 22nd, excluding entertainment products, which it plans to stop selling.
Most analysts had forecast a decline of about 5 per cent.
However, the group said its gross profit margin improved ahead of its expectations.
Over the 21 weeks to January 22nd, underlying sales were down 6 per cent.
Sales at travel outlets open over a year were down 3 per cent over the 21 weeks.
The group did not give an eight-week figure for its travel arm.
"Overall performance for the period was in line with expectations," it said.
"Looking ahead, we expect the trading environment to remain challenging and we have planned accordingly."
Reuters