Britain's top health and beauty retailer Boots posted a 2.6% third-quarter rise in same-store sales at its UK outlets and said full-year profits would be in line with market forecasts.
Total sales at the 1,400-strong Boots The Chemists chain increased by 4.2% in the period, while the international operations showed a 3.7% sales upturn adjusted for currency movements.
The like-for-like figure came in at the lower end of analysts' expectations of a 2.5-4% rise, but Chief Executive Richard Baker said the Christmas quarter had been a successful one.
'We grew sales, maintained gross margins and built share in a highly competitive market. Although there remains much to do on our change programme and consumer spending is subdued, we are progressing well in making Boots more modern, competitive and efficient,' Baker said.
Volume sales at Boots The Chemists rose by 4.1%, with a strong contribution from dispensing, cosmetics and fragrances along with seasonal items and baby goods, but price deflation was high at 2.4% as high-street competition intensifies.
The company's stock position was in line with expecations, and the end-of-season clearance was going well, Boots said.
Boots The Chemists' operating profit will be broadly in line with market forecasts between £490-500m, Boots said.
At the international operation, growth was held back by healthcare reforms in Germany and production issues, while the low incidence of flu in Europe had also restricted sales, the company said.
