WH Smith full year profit to land at lower end of forecast at £75m
WH Smith has warned that its full-year pre-tax profit is expected to be at the lower end of its previous forecast range, at £75 million.
The company said this was a result of lower trading profit margins, driven by increased promotional activity, a reduction in brand marketing, and inflation headwinds.
Subscribe to TRBWH Smith said it delivered solid trading in its peak summer period. UK total revenue in its fourth quarter was up 7%, with like-for-like growth of 4%.
Total revenue from stores in airports rose by 7%, and by 2% on a like-for-like basis, as the retailer benefited from passenger growth and higher spend per passenger.
In the hospital channel, total revenue climbed by 9%, with like-for-like revenue up 8%, while stores at rail stations increased their revenue by 5%, and by 4% like-for-like.
The company opened six one-stop-shops in the financial year ahead of the peak trading season, including refurbished stores at Heathrow, Liverpool, Belfast International and East Midlands airports.
Meanwhile, total revenue in North America increased by 5% in the quarter, with like-for-like revenue decreasing by 3% year-on-year.
In WH Smith’s rest of the world division, total revenue was down 4% as store closures continued in the period. However, like-for-like revenue rose by 3%.
The company said it had made good progress with its transformation programme across its business in the period, with strong cost and cash management supported by working capital improvements, portfolio rationalisation and targeted capital investment in the higher return travel essentials space.
