WH Smith’s share price soared on Wednesday as it announced strong sales growth at its Travel business.
At £12.57 per share, the FTSE 250 retailer was last 5.6% higher in midweek business.
Revenues advanced 3% at group level during the 21 weeks to 25 January, WH Smith said, or 4% at stable exchange rates.
At its Travel unit – which has stores in airports, train stations and hospitals – sales increased 7% and 8% on a headline and a constant currency basis respectively.
Sales at Smiths’ High Street operations dropped 6% on these bases, though this was in line with forecasts.
Travelling In Style
At Travel UK, the firm’s largest single division, revenues rose 7% at headline level and by the same percentage on a like-for-like basis.
WH Smith said “we are seeing good results from our new food and extended health and beauty ranges which are driving further profitability.” It added that performance was especially strong at airports, where revenues grew ahead of passenger numbers.
North American travel sales improved 3% on both a headline and like-for-like basis. Meanwhile, corresponding sales were up 12% and 9% across the rest of its non-UK and US operations.
Strong Start
Chief executive Carl Cowling commented that “the group has had a good start to the financial year, and we continue to see strong momentum across our core Travel business.”
He said the retailer’s UK Travel division had produced “another excellent performance across all channels,” while in North America it enjoyed “a notable shift in like-for-like revenue growth… as a result of the actions we have taken to enhance our ranges and introduce new categories.”
Cowling added “while there is some economic uncertainty, we are confident of another year of good growth in 2025.”
On Monday, WH Smith announced it is “exploring potential strategic options” for its beleagured High Street unit. Speculation over a possible sale have grown as the company increases its focus on travel destinations.
Smiths’ Travel unit boasts some 1,200 stores across 32 countries, and is responsible for around 85% of the company’s profit.
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