REG - WH Smith PLC - Trading update for the 13 week period to 27 May 23

WH SmithAnnouncement

31/05/2023 07:00

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RNS Number : 0582B  WH Smith PLC  31 May 2023

WH Smith PLC

 

The global travel retailer

 

31 May 2023

 

Trading update for the 13 week period to 27 May 2023

 

Continued strong momentum across our global Travel business;

expectations for the full year increased

 

As we approach the peak trading period in Travel, the business continues to
perform strongly across all our key travel markets, with total Travel revenue
in the 13 weeks to 27 May 2023 up 31% versus the prior year. As such, since
our announcement on the 20 April, our expectations for the full financial year
have further improved.

 

Our strategy for growth continues to deliver. We have now won over 70 stores
in Travel so far this financial year, with further wins since our last update
in all three divisions including at Salt Lake City and Portland airports in
North America. Our pipeline of stores won and yet to open is over 130.  We
are very well positioned for further growth across our Travel markets in the
current financial year and beyond.

 

Group revenue growth in the period compared to 2022 has been:

 

                    Total vs 2022  LFL(1) vs 2022
                    13 weeks to    13 weeks to

                    27 May 2023    27 May 2023
 Travel UK          24%            21%
 North America      26%(2)         5%
 Rest of the World  79%(3)         39%

 Total Travel       31%            18%

 High Street(4)     2%             3%

 Group              23%            14%

(1) At constant currency

(2) Includes +5% impact from currency translation

(3) Includes +2% impact from currency translation

(4) Includes internet businesses

Travel

 

Our UK division continues to perform strongly, driven by category expansion,
our focus on average transaction value, the success of InMotion, our travel
essentials one-stop-shop format and the ongoing recovery in passenger numbers.
In the 13 weeks to 27 May 2023, Travel UK total revenue was up 24% on last
year. Total revenue compared to the prior year was up 26% in air and up 33% in
hospitals. Rail was up 10% despite the ongoing impact of industrial action.

 

Total revenue in our North America division during the 13 week period was up
26% on last year as we open our pipeline of new stores and passenger numbers
continue to recover to 2019 levels. Our strong success rate in winning new
tenders continues, with recent successes at Salt Lake City and Portland
airports. In addition, we are active in several current tenders for new
stores. Our recently opened stores in Newark and Kansas airports are
performing well. We now have 60 stores won and yet to open, and we are excited
about the further significant growth opportunities in North America.

 

Our Rest of the World division is performing extremely well. Total revenue for
the 13 week period to 27 May 2023 was up 79% on last year. Our Australian and
Asian businesses continue to recover and we continue to make progress on
winning new business with further wins in Europe in the period. We have a
strong pipeline and are in active discussions regarding a number of tenders.

 

High Street

 

In High Street, total revenue, including online, was up 2% in the 13 week
period to 27 May 2023. Our store network performed well with total revenue up
2% versus the comparative period last year.

 

Outlook

 

Looking ahead, the Group is in a good position as we approach the peak summer
trading period. Trading is strong across all three Travel divisions, and we
are very well positioned to capitalise on the substantial growth drivers
across our markets. Since our announcement on the 20 April, our expectations
for the full financial year have modestly improved.

 

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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