WH Smith has bounced back from the effects of the pandemic, with it setting its sights on further expansion around the world.
The business took a major hit during the height of the Covid crisis as travel restrictions decimated sales in its stores located in airports and railway stations. However, WH Smith managed to stabilise its finances and mount a recovery as passengers returned.
Over the year to 31 August 2022, the retailer delivered a headline profit before tax and non-underlying items of £73m compared with a loss of £55m in 2021. Total revenue rose from £886m to £1.40bn.
The core Travel division posted a trading profit of £89m compared to a prior loss of £39m previously. The recovery in the travel market as the year progressed meant sales jumped 131% to £927m.
Meanwhile, WH Smith’s High Street unit saw profits increase from £19m to £33m despite a 2% fall in revenue to £473m.
Chief Executive Carl Cowling said: “2022 has been a successful year for WHSmith and we enter the new financial year with the group in its strongest-ever position as a global travel retailer with multiple growth opportunities across the world.
“Our high street division, including our online businesses, delivered another resilient and profitable performance. These businesses continue to generate strong cash flow allowing us to invest across the group.”
WH Smith opened 98 new stores in the year and revealed that it has a pipeline of 150 new stores to open across 16 countries and in airports as varied as Los Angeles, Salt Lake City, Brussels, Oslo and Melbourne.
The group noted that its InMotion technology stores had a “very good year”. It now has over 150 InMotion stores operating, including 36 outside of the US. WH Smith recently brought the format to the UK with initial stores said to be trading ahead of its initial expectations. “We see significant scope to grow the brand globally,” said Cowling.
NAM Implications:
- Given the results of this turnaround…
- Time to reassess WH Smith role in your customer portfolio.
- And focus on securing and maintaining your fair share of investment.
