WH Smith boss Stephen Clarke today defended his strategy of cutting costs to drive profit while suffering yet another fall in sales.
The bookseller and stationer posted a 3% rise in pre-tax profits to £69 million for the six months to the end of February, despite total sales falling 4% to £613 million.
It said it had found £9 million of cost savings in its High Street stores in the first half of the financial year, with a further £5 million expected in the second half. It raised its dividend by 15%.
Clarke said: “The group has delivered another strong performance, with profit growth in travel and High Street, demonstrating the continuing success of our strategy.”
Despite the cost-cutting measures, the retailer said it had replaced 100 carpets amid criticism of standards at its stores.
A Twitter account, @WHS_Carpet, has been highlighting threadbare flooring and dirty ceilings in its shops.
Clarke hit back, saying: “In our Liverpool Street store we have a shiny new marble floor and they tweet a pictures of it with a Mars bar wrapper thrown on the floor.”WH Smith defends cost cuts despite carpeting from critics
