A strong performance by its stores located in travel sites has helped WH Smith deliver robust full-year figures.
Over the 12 months to 31 August, total group revenue rose 7% to £1.92bn, while headline profit before tax and non-underlying items increased 16% to £166m.
The Travel division, which covers stores in airports, railway stations and hospitals, saw its sales revenue grow by 11% to £1.47bn after strong trading over the key summer period. This was driven by new store openings (38 net of closures) and like-for-like growth of 10% in the UK and 9% in the Rest of the World unit. Its North America business was flat. Trading profit increased from £164m to £189m.
“We are making excellent progress in the UK as we continue to benefit from the rollout of our one-stop-shop format, which is creating significant opportunities to further grow profitability,” said CEO Carl Cowling.
“Our most exciting opportunity for growth is in North America. We are very pleased to have recently won some significant new airport business, including wins at Dallas, Denver and Washington Dulles airports, and we are the preferred bidder for a further 15 stores across two major US airports. Our store opening programme is on track and we have a new store pipeline of c.60 stores already won.”
Meanwhile, WH Smith’s High Street chain continued to struggle, with total sales down 4% to £452m and like-for-likes slipping 2%. However, trading profit remained flat at £32m as the retailer focused on costs and cash generation.
Looking ahead, Cowling said: “The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”
NAM Implications:
- With sales of £1.47bn vs High Street at £452m…
- …the growing success of their Travel division means there is life after High Street for WH Smith.
- Time for the company to consider its options, fundamentally?
