REG - WH Smith PLC - Trading Statement

WH SmithAnnouncement

18/01/2023 07:00

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RNS Number : 0403N  WH Smith PLC  18 January 2023

 
18 January 2023

 

WH Smith PLC - The global travel retailer

 

Ahead of its Annual General Meeting, the Company announces its trading update

for the 20 week period to 14 January 2023

 

 

Strong performance; significantly ahead of last year

 

 

Commenting on today's announcement, Carl Cowling, Group Chief Executive said:

 

"The Group has made a strong start to the financial year, with our global
travel retail business growing strongly across all regions.

 

"Our strategy to transform our customer offer continues at pace through
broadening our categories and expanding our ranges, to include health and
beauty and tech accessories, and is underpinned by a forensic approach to
retail.

 

"We continue to make good progress with our store opening programme and, in
the year to date, we have opened over 40 new stores. We have also won
significant tenders at Reagan National airport in Washington and Palm Springs
airport in the US, as well as a further three InMotion stores in Italy at Rome
Fiumicino airport. This takes the total number of stores we have won and yet
to open to over 130.

 

"I would like to take this opportunity to thank our team across the globe and,
in particular, our store colleagues who have worked exceptionally hard serving
our customers throughout this busy trading period.

 

"The Group is in its strongest ever position as a global travel retailer. This
strength, combined with the ongoing improvement in passenger numbers across
the globe, means that we are confident of another year of significant growth
in 2023."

 

Trading Update

 

The Group has delivered a strong performance over the 20 week period with
total Group revenue up 41% compared to the prior year and up 20% versus 2019.
Across our global Travel business, we have seen continued momentum since the
start of the financial year resulting in a strong 20 week performance up 48%
on 2019 and up 77% on 2022. This is despite passenger numbers remaining well
below 2019 levels. Our UK High Street division delivered a good performance,
in line with our expectations.

 

                       Revenue 20 Weeks to 14 January 2023
                       Total      Total      LFL(3)     LFL(3)

                       versus     versus     versus     versus

                       2022       2019(1)    2022       2019(1)
 UK                    70%        18%        52%        2%
 North America(2)      31%        20%        21%        (2)%
 Rest of the World(3)  198%       30%        126%       (1)%

 Total Travel(4)       77%        48%        48%        1%

 High Street(5)        (2)%       (14)%      -%         (10)%

 Group                 41%        20%        26%        (4)%

(

1) Equivalent month in 2019; (2) Proforma, constant currency; (3) Constant
currency; (4) As reported; (5) Includes internet businesses

TRAVEL

 

Travel UK

 

In Travel UK, total revenue was up 70% compared to the prior year for the 20
week period and up 18% versus 2019. We continue to see improving passenger
numbers across UK air, a strong performance in hospitals, and rail performing
well.

 

We continue to focus on initiatives that position us well for future growth.
We have increased average transaction values and broadened our categories
during the period, for example, by ranging more health and beauty and
wellbeing products, providing customers with a one-stop-shop for all their
travel essentials. Our market leading tech accessories stores, InMotion, are
performing strongly.

 

In the UK, we are on track to open 15 stores in the year across all channels.

 

                  Revenue 20 Weeks to 14 January 2023
                  Total      Total      LFL        LFL

                  versus     versus     versus     versus

                  2022       2019(1)    2022       2019(1)
 Air              132%       35%        92%        4%
 Hospitals        32%        18%        28%        8%
 Rail             24%        (13)%      26%        (9)%

 Total Travel UK  70%        18%        52%        2%

 

 

Travel - North America

 

Overall revenue for the 20 week period was up 31% compared to the prior year
and on a proforma basis was up 20% versus 2019. Air passenger numbers
continued to improve through the key Thanksgiving and holiday season with
Transportation Security Administration ('TSA') data for the key three week
holiday period down only 4% compared to 2019.

 

The growth opportunities in North America are substantial and our strong track
record of tender wins continues. We have recently won a further eight new
stores across Reagan National airport in Washington and Palm Springs airport.
We now have over 60 stores won and due to open in North America over the next
three years, with 37 due to open in the current financial year.

 

Travel - Rest of the World (ROW)

 

Total revenue was up 198% compared to the prior year for the 20 week period
and up 30% versus 2019. Outside of the UK and North America, we have seen
notable improvements in Australia and Asia, with Europe the best performing
region in the period.

 

There are very good opportunities to win new business under the WHSmith brand
and our tech accessories brand, InMotion, outside of the UK and the US. Since
our last trading update in November 2022, we have opened 12 new stores
including at Brussels and Kuala Lumpur airports and the Gold Coast and
Melbourne in Australia. In addition, we have won three InMotion stores at Rome
Fiumicino airport which brings the total number of stores won and yet to open
in ROW to over 60.

 

 

 

HIGH STREET

 

LFL revenue was flat on the prior year in line with our expectations. Through
the peak period, we maintained good stock availability and we exited Christmas
with a clean stock position. Our cost savings target for the full year is on
track.

 

Outlook

We had a strong start to the year and, while there is economic uncertainty,
passenger numbers globally continue to improve and this, combined with the
strength of the Group's growth opportunities, means that we are confident of a
year of significant progress in 2023.

Interim Results Announcement

 

WH Smith PLC, the global travel retailer, will announce its 2023 Interim
results on Thursday 20 April 2023.

 

Enquiries:

 

WH Smith PLC

Nicola Hillman                         Media Relations
 
01793 563 354

Mark Boyle                             Investor Relations
                                      07879 897 687

 

Brunswick

Tim
Danaher
 
 
020 7404 5959

 

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