WH Smith reports ‘solid’ first half but warns of Middle East disruption
WH Smith has reported a “solid” first half performance, with revenue up 5% year-on-year on a constant currency basis.
However, the retailer has warned of potential disruption caused by war in the Middle East.
Subscribe to TRBIn the 26 weeks to 28 February, UK revenue edged up 2% on both a like-for-like and total basis.
The UK performance was boosted by WH Smith’s hospital channel, where total and like-for-like revenue increased by 7% and 4% respectively.
Stores in UK airports increased their revenue by 1%, with like-for-like growth of 2%. As expected, total growth was impacted by temporary store closures across all Heathrow Airport terminals as WH Smith invested in upgrading its stores.
Meanwhile, total revenue was up 1% with like-for-like revenue down 2% in the retailer’s rail channel, against a backdrop of continuing consumer headwinds.
Looking at WH Smith’s international performance, total revenue in North America increased by 10%, with like-for-like revenue up 1%. In the rest of the world, revenue was up by 8% and 6% respectively on a total and like-for-like basis.
The retailer said it is on track to deliver group guidance for its full year.
Commenting on the situation in the Middle East, WH Smith said: “We are mindful of the geopolitical uncertainty in the Middle East and the impact that this is having on passenger numbers across our key markets.
“We will continue to monitor the situation and focus on what we can control, including executing against our clear strategic priorities and strengthening our focus on cost and cash discipline.”
