High street bookseller WH Smith has said that while UK sales rose during the festive period, its US airport and hotel outlets continued to struggle due to the impact of 11 September.

Total UK sales for the six weeks to 5 January rose by 8% compared with the same period one year earlier, while revenues at its US travel retail business slumped by 16%.

The bookseller said it plans to close some loss-making hotel-based stores in the US, adding that the latest sales figures have forced it to take a "more pessimistic" view of its US travel retail arm.

The company blamed the US economic slowdown and the downturn in the global travel industry since the 11 September attacks.

Into the red

The US travel retail business has made a trading loss of �10m pounds over the first four months of the financial year, the company said.

WH Smith Chief Executive Richard Handover described the latest results as "disappointing."

"We will however continue to closely monitor the sales performance in the US to determine what further action may be necessary," he added.

WH Smith said it has also made a "significant reduction" in costs at its US head office in Atlanta.

Share sell-off

Investors reacted with caution, marking WH Smith shares 13p lower at 487p in mid-morning trade.

WH Smith's US airport stores are safe for now thanks to rent reductions negotiated with airport managers.

The company's US travel retail business consists of about 180 airport shops and a further 393 hotel-based stores.

UK sales received a boost from strong demand for DVDs over the Christmas period, while stationery sales were flat, the company said.