WH Smith ups annual outlook amid travel trading boom
The group said like-for-like sales in its travel arm surged 18% higher in the 13 weeks to May 27, while its high street shops notched up a 3% rise.
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Your support makes all the difference.Retailer WH Smith has upped its full-year guidance again after sales jumped higher thanks to the ongoing bounce-back in travel.
The group said like-for-like sales in its travel arm surged 18% higher in the 13 weeks to May 27, while its high street shops notched up a 3% rise.
Total group-wide revenues raced 23% higher across both businesses, with like-for-like sales up 14%.
WH Smith said its expectations for the full year have “modestly improved” since its update last month, when it also upped its guidance.
WH Smith 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 April 20, our expectations for the full financial year have modestly improved.”
Shares in the firm lifted 2% in morning trading on Wednesday.
The firm is enjoying a boom in trading across its stores based at sites including airports and railway stations thanks to the recovery in travel worldwide.
Its has earmarked more than 130 new travel shops to open, with 70 new sites secured since the start of its financial year.
The group said recently that its growing travel arm is set to represent over 70% of all revenues by the end of the year, as well as 85% of its profits.
It is expanding particularly quickly across North America, where total revenues rose 26% in the recent quarter.
In the UK, travel sales rose 24%, but revenue growth in rail station sites was held back by recent strike action, up 10% against 26% in airports and 33% in hospitals.
The update comes after the retailer revealed in March it was hit by a cyber attack, with hackers accessing some workers’ data.
WH Smith said names, addresses, national insurance numbers and dates of birth of current and former UK staff may have been among the data breached, but its websites and customer accounts were unaffected.