WH Smith eyes ‘one other 12 months of great development’

WH Smith anticipates ‘one other 12 months of great development’ after 2023 earnings had been boosted by resilient journey demand. 

Turnover within the retailer’s world journey division grew by 16 per cent on a relentless forex foundation for the 20 weeks ending 20 January, with UK journey gross sales up 15 per cent.

WH Smith on Friday attributed the bounce to the continued rebound in airport passenger numbers amid an absence of Covid-related restrictions, in addition to good performances at rail and hospital shops.

Strategic transfer: WH Smith has steadily shifted away from the excessive avenue in recent times with a purpose to increase its presence abroad and in journey hubs

Rising airline passenger ranges additionally boosted the corporate’s North American journey revenues by 14 per cent, with an additional uplift supplied by good like-for-like development throughout the remainder of the world.

This offset declining commerce at its British excessive avenue phase, the place gross sales dropped by 4 per cent regardless of modest development in retailer purchases over the 4 weeks ending 30 December. 

As a outcome, WH Smith, which has about 1,400 retailers and owns on-line greeting card model FunkyPigeon, lifted its whole income by 9 per cent.

‘We have made begin to the monetary 12 months and, whereas there’s some financial uncertainty, we’re assured of one other 12 months of great development in 2024,’ the group advised traders.

The Swindon-based agency has steadily shifted away from the excessive avenue in recent times with a purpose to increase its presence abroad and in journey hubs.

Last 12 months, chief govt Carl Cowling stated the corporate has no plans to open any extra shops on excessive streets as a result of they might simply be a ‘duplication’ of their present shops.

WH Smith intends to open greater than 110 journey retailers this 12 months, together with 50 throughout North America and 15 within the UK.

It just lately opened its largest British-based journey retailer, totalling 6,000 sq. toes in dimension, at Birmingham Airport and the primary of six institutions at Budapest Airport.

Russ Mould, funding director at AJ Bell, remarked: ‘The excessive avenue enterprise is basically the money machine which supplies robust help for the group to increase and pay dividends to shareholders.

‘The shops will not be shiny and new, little cash appears to be spent on refurbishments, and it seems to run on a skeleton crew because it cuts prices to the bone.

Yet he added: ‘For so long as persons are shopping for the odd journal, paperbacks, stationery, wrapping paper or board recreation, WH Smith’s excessive avenue retailers stand likelihood of survival.’

WH Smith shares had been 2.3 per cent decrease at £12.04 on early Friday afternoon and have declined by roughly 23 per cent over the previous 12 months.