8th Jul 2021 09:58
(Alliance News) - WH Smith PLC has raised its expectations for the current financial year after reporting improving trading trends and highlighting a strong North America performance, it announced on Thursday.
The retailer pointed to its North American performance as a growth area. There, the business has continued its quick recovery, with recent sales, in June, at 88% of 2019 levels.
"Following the stronger-than-anticipated performance from our North America business, we anticipate a small improvement to management's expectations for the current financial year," the company commented.
WH Smith said it has been encouraged by improving trading trends, as it unveiled new business wins across a number of UK airports.
The books and magazines retailer said it has won places for 18 technology and accessories stores across a number of significant UK airports, including London Heathrow, Manchester and Birmingham. They will trade under the InMotion brand, its technology and accessories business in North America.
The new shops are expected to incur operating costs and capital expenditure investment GBP15 million in financial 2022, though in a fully recovered travel market the stores are expected to deliver sales of GBP60 million per year.
Turning to recent trading, WH Smith said revenue in the first quarter represented 59% of the 2019 level. This was unchanged in the second quarter at 58%, though it improved to 62% in the 18 weeks to July 3, driven by the travel business.
In WH Smith's High Street division, despite footfall continuing to be below the 2019 level, WH Smith said its websites, such as funkypigeon.com, continued to deliver a solid performance. Revenue generated from the High Street division in the 18 weeks to July 3 was 86% of 2019 levels.
Shares in WH Smith were down 0.6% at 1,639.00 pence in London on Thursday.
By Will Paige; [email protected]
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