WH Smith “well positioned” for peak summer trading as travel sales continue to rise
WH Smith has reported a 5% increase in quarterly group revenue, or 4% on a like-for-like basis, as its travel division continues to perform well.
In the 13 weeks to 1 June, UK travel revenue was up 9% year-on-year following respective increases of 8%, 14% and 8% in stores at airports, hospitals and rail stations.
In North America, total revenue rose by 5% at constant currency as WH Smith rebalanced its space from lower to higher performing categories. The retailer also won a new contract at Detroit airport which includes the opening of four stores.
Meanwhile, revenue in the rest of the world climbed by 16% on a constant currency basis as passenger numbers continued to improve across the markets.
The retailer said its work to transform its business to a one-stop-shop for travel essentials is delivering strong results, with an increase average transaction values and returns.
Looking at WH Smith’s high street division, total revenue, including online, was down 4% with store revenue flat on a like-for-like basis.
During the period, WH Smith opened five new Toys “R” Us shop-in-shops within its UK stores and is now on track to launch a further 25 shop-in-shops by the end of the financial year.
Looking ahead, the retailer said its expectations for the full financial year are unchanged.
It added: “The group is well positioned as we enter our peak summer trading period. Good trading momentum continues across all three travel divisions and we are in a strong position to capitalise on substantial growth opportunities across our markets.”
