WH Smith has continued its recovery from the effects of the pandemic, with it moving back into the black as customers returned to its stores located in airports and train stations.
During the six months to 28 February, the retailer’s headline profit before tax and non-underlying items came in at £14m compared to a loss of £19m in the previous year.
Total revenue jumped 45% to £608m after sales in its Travel division jumped 125% to £338m as Covid restrictions eased.
Sales in its High Street unit were unchanged at £270m, although the group noted that this was a “resilient performance” given the challenging trading conditions in the retail sector.
The Travel and High Street businesses made trading profits of £10m and £26m respectively.
Carl Cowling, WH Smith’s Chief Executive, commented: “We have seen a recovery across all our travel markets despite the impact of the Omicron variant in Q2, and we are in a strong position to capture growth as the recovery continues.
“Across the globe, we continue to roll out our travel stores across all our formats. Since the start of the financial year, we have won 74 stores, including a significant tender win in Spain, bringing the total pipeline to over 125 stores. We expect more space to become available, particularly in North America, as our markets continue to recover.”
During the period, WH Smith launched 28 new technology stores in the UK under its InMotion brand, including a recently opened flagship store at Heathrow Terminal 5. Outside of the US and the UK, the retailer has opened and won a further 11 InMotion stores across six countries as it looks to grow the brand globally.
Looking ahead, Cowling said: “We continue to invest in the business where we see attractive growth opportunities and have positioned the group well to benefit from the return of passenger numbers. We have improved the scale and footprint of the business and are operationally stronger than prior to the pandemic. While there are some uncertainties in the broader global economy, the group is well-positioned to capitalise on the ongoing recovery in our key markets and take advantage of the many opportunities ahead.”
