REG - WH Smith PLC - Trading update

WH SmithAnnouncement

05/06/2024 07:00

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RNS Number : 1084R  WH Smith PLC  05 June 2024

WH Smith PLC

 

The global travel retailer

 

5 June 2024

 

Trading update for the 13 week period to 1 June 2024

 

Group on track to deliver full year in line with expectations. Well positioned
for the peak summer trading period.

 

Trading momentum continues across our key markets with total Travel revenue in
the 13 weeks to 1 June 2024 up 9% on a constant currency basis versus the
prior year. The Group is on track to deliver the full year in line with
expectations.

 

Group revenue growth in the period compared to 2023 has been:

 

                    Revenue 13 Weeks to 1 June 2024
                    Total        Total constant currency versus 2023  LFL

                    versus                                            Versus

                    2023                                              2023
 Travel UK          9%           9%                                   8%
 North America      3%           5%                                   -%
 Rest of the World  15%          16%                                  7%

 Total Travel       8%           9%                                   5%

 High Street(1)     (4)%         (4)%                                 (1)%

 Group              5%           6%                                   4%

(1 Includes internet businesses)

 

Travel UK

 

Our UK division continues to perform strongly. In the 13 weeks to 1 June 2024,
total revenue remains up 9% on last year as we annualise the strong recovery
in passenger numbers in 2023. Total revenue was up 8% in Air, up 14% in
Hospitals and up 8% in Rail in the period.

 

The transformation of the business to a one-stop-shop for travel essentials is
delivering strong results, increasing average transaction values and returns.
As part of our category development initiatives to expand the breadth and
quality of our food-to-go ranges, we recently launched a new food-to-go brand,
Smiths Family Kitchen, in more than 300 Travel stores. Customer feedback has
been positive.

 

North America

 

Total revenue in our North American division during the 13 week period was up
5% on last year on a constant currency basis. LFL sales were flat with similar
trends as reported at the Interim results.

 

We are applying our forensic approach to retailing across our North America
business with a range of initiatives. These include:

·    rebalancing our space from lower to higher performing categories

·    increasing our range of snacking and confectionery

·    increasing the number of chillers in store.

 

Early results from these initiatives have been positive and recent trends have
been encouraging.

 

During the period, we have won an important new contract at Detroit airport
comprising 4 new stores. The tender pipeline remains very strong.

 

Rest of the World

 

Our Rest of the World division is performing well. Total revenue for the 13
week period to 1 June 2024 is up 16% on last year on a constant currency basis
as passenger numbers continue to improve across these markets.

 

We are making good progress in growing our Rest of the World business and
continue to win new business.

 

High Street

 

In our UK High Street division, total revenue, including online, was down 4%
in the 13 week period to 1 June 2024. Our store network performed well with
LFL revenue flat versus the comparative period last year. We have successfully
opened five new Toys "R" Us shop-in-shops within our stores. Early feedback
has been good, and we are on track to open a further 25 shop-in-shops in the
balance of the financial year.

 

Outlook

 

Since our announcement on the 25 April 2024, our positive expectations for the
full financial year are unchanged.

 

Looking ahead, 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.

 

Enquiries:

 

WH Smith PLC

Mark
Boyle
Investor Relations                         07879
897687

Nicola
Hillman
Media Relations                            01793
563354

 

Brunswick

Tim Danaher
                                                                    0207
404 5959

 

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