WH Smith has upped its full-year expectations as its stores operating in travel hubs continue to perform well even before the peak trading season.
In an update for the 13 weeks to 27 May, the book and stationery retailer revealed that total sales in its Travel division had climbed 31% year-on-year, with like-for-like growth of 18%.
Travel revenue in the UK rose by 24%, following uplifts of 26% in airports and 33% in hospitals. Revenue in railway stations grew 10% despite the ongoing impact of industrial action.
Total revenue in its North America travel business was up 26%, boosted by new stores and a recovery in passenger numbers. In the Rest of the World, total revenue jumped 79%.
Meanwhile, WH Smith’s High Street and online division increased its revenue by only 2%. However, the group noted that its store network had performed well, with total revenue up 2%.
Looking ahead, the retailer said: “The group is in a good position as we approach the peak summer trading period. Trading is strong across all three travel divisions, and we are very well positioned to capitalise on the substantial growth drivers across our markets. Since our announcement on the 20 April, our expectations for the full financial year have modestly improved.”
NAM Implications:
- Is WH Smith reaching a point where dividing travel Retail from High Street & Online might help demonstrate relative strengths of the business.
- Before an activist shareholder…
- (the figures appear to speak for themselves)
