UK. WHSmith Group revenue posted +8% growth year-on-year in the 20-week period to 20 January, with the Travel division making a strong contribution.
WHSmith Travel posted a +16% climb in revenue for the period on a constant currency basis. In Travel UK, the largest division, total revenue was up +15% compared to the prior year for the 20-week period and up +14% on a like-for-like basis.
The company noted: “We continue to see improving passenger numbers across UK Air, a strong performance in Hospitals, and Rail is performing well.
“Across all our channels, we continue to focus on our key growth drivers: space growth, increasing ATV and spend per passenger, driving EBIT margins and benefiting from the growth in passenger numbers and customers. In the UK, we are on track to open 15 stores in the year across all channels, and we expect to open 15 new stores each year over the medium term.”
In Travel North America, revenue for the 20-week period was up +14% compared to the year before on a constant currency basis. The Marshall Retail Group (MRG) airport business (now about 50% of the revenue for the North American division) showed good like-for-like growth. We are seeing passenger number growth and strong demand for our travel essentials categories.
WHSmith said: “The performance of our smaller businesses, InMotion and the resorts business in Las Vegas, has remained as we reported in November. The growth opportunities in North America are substantial and there is a good pipeline of tenders. We have a strong airport store opening programme in the year with the majority of these stores due to open in the second half, as expected. We are on target to open over 50 stores this financial year in North America.”
WHSmith Travel’s Rest of the World (ROW) division posted revenue for the 20-week period up +24% on a constant currency basis, compared to a year earlier. The retailer opened the first of six stores at Budapest Airport in the period, and is on track to open over 40 stores in the year.
WHSmith Group Chief Executive Carl Cowling said: “I am pleased with the start to the financial year. Our Travel business is growing strongly across all our divisions and we have seen a notably strong performance in the UK, our largest division, with total revenue up +15% and like-for-like revenue up +14%.
“During the period, we successfully opened our largest UK Travel store at Birmingham airport – a one-stop-shop for travel essentials – and we have received very positive feedback from both landlord and customers.
“We continue to make excellent progress in North America, and I am particularly excited by the substantial growth opportunities that exist in this market. We are on track to open over 50 new stores in North America this financial year. In total, we are on track to open over 110 stores this financial year.
“The Group is trading well and is in its strongest ever position as a global travel retailer. We are confident of another year of significant growth in 2024.” ✈
