High street retailer WH Smith has warned it is heading for its worst month since at least September despite a strong Christmas period.
The business said sales so far in January have been 46% of the same period a year ago.
It is a major step down from last month, when the retailer outperformed expectations, climbing to 67% of the sales it made in December 2019, and even higher in its high street stores.
Chief executive Carl Cowling said: “In our high street business, we worked hard to navigate our way through the evolving Covid restrictions as we approached the Christmas trading period.
“This positioned us well, resulting in a better than expected Christmas with sales in December at 92% of 2019 levels. Our online businesses continued to deliver significant year-on-year growth in the period.”
January has proved trickier for many retailers as much of the UK remains under strict lockdown measures.
Both of the business’s main arms, its travel and high street stores, were badly hit across the month.
Travel has proven the more susceptible, and sales slumped to 30% of last year’s levels, but the figures had also been low in December.
“In our Travel business, we saw little change in the environment prior to the current lockdown, as expected, with sales in December at 36% of 2019 levels,” Mr Cowling said.
“In North America, we have seen a quicker recovery versus the rest of the world, given the higher volume of domestic travel.”
WH Smith said it had not experienced any disruption over the period due to the UK’s exit from the European Union. It does not expect Brexit to have a material impact on its ability to import stock in the coming year.
Shares in early trading were 5% up to 1635p.