1st Sep 2021 08:29
(Alliance News) -Â WH Smith PLC on Wednesday lifted its outlook for its recently ended financial year, but cautioned on the year ahead amid an "uncertain" travel recovery path.
Shares in WH Smith were down 5.2% at 1,548.00 pence in London early Wednesday, making the stock the worst performer in the mid-cap FTSE 250 index.
The books and stationery retailer, which has outposts in train stations and airports as well as the high street, said second half group revenue was 65% of the same period two years ago. This marked an improvement from the first half figure of 60%.
For the eight weeks to August 28, revenue showed a further improvement, standing at 71% of the levels reported two years ago.
For its travel unit, second half revenue stood at 38% of 2019's levels. UK travel passenger numbers remain "significantly" down on 2019 levels, the company said, but it is seeing a gradual recovery.
"Outside of the UK, our North America business has performed well in July and August, with sales at 93% compared to 2019 levels. We remain confident in the strength of our North American business and in winning further stores in this market," said WH Smith.
The high street segment saw total revenue in the second half at 85% of 2019's levels, with the company highlighting its "well-located stores and growing internet businesses."
WH Smith said it expects the outcome for the financial year ended August 31 to be slightly ahead of expectations.
However, it warned on the financial year ahead.
WH Smith said: "As previously stated, we remain confident in revenues returning to pre-Covid levels in the next two to three years. While there will be a return to good levels of profitability in the year ending August 2022, the trajectory of the recovery in travel remains uncertain. This combined with the previously announced accounting finance charges relating to the successful convertible bond issue on April 29, means that we currently anticipate the levels of profitability for the year ending August 2022 will be at the lower end of market expectations."
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Wh Smith