REG - WH Smith PLC - Trading update

WH SmithAnnouncement

15/06/2022 07:00

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RNS Number : 8661O  WH Smith PLC  15 June 2022

 

WH Smith PLC

 

15 June 2022

 

Trading update for the 15 week period to 11 June 2022

 

Q3 trading ahead of 2019 revenue; strong performance from Travel

Full year outturn expected to be at the higher end of expectations

 

Further to the Group's Interim results announcement on 27 April 2022, the
business continues to benefit from the ongoing recovery across all our key
travel markets, with Group revenue in the 15 weeks to 11 June 2022 ahead of
2019 levels for the first time at 107%, with a particularly strong performance
from Travel.

 

We remain in a strong position to benefit from the significant growth
opportunities across the global travel retail market and currently have over
125 stores won and yet to open. In addition, there are a large number of
ongoing tenders across our markets.

 

Total Group revenue in the period as a percentage of 2019 total revenue has
been:

 

                 % of 2019 Revenue(1)
                 Q1       Q2       15 weeks to

                                   11 June 2022
 Travel          83%      81%      123%
 High Street(2)  87%      84%        79%
 Group           85%      83%      107%

 

Travel

 

                       % of 2019 Revenue(1)
                       Q1       Q2       15 weeks to

                                         11 June 2022
 UK                    69%      72%      104%
 North America(3)      91%      91%      111%
 Rest of the World(4)  41%      48%        88%

 Total Travel(5)       83%      81%      123%

 

Our UK business is performing strongly. As passenger numbers recover, we
continue to see strong ATV growth and higher penetration driven by our ongoing
focus to significantly enhance our ranges and develop our categories, such as
health and beauty and technology. Our recently opened InMotion stores across
UK airports are performing well. In the 15 weeks to 11 June 2022, Travel UK
total revenue was at 104% versus 2019. By channel in the UK, air was 114%,
hospitals were 102% and rail was 87% compared to 2019 levels.

 

Our North America business continues to show strong momentum with total
revenue during the 15 week period at 111%(3) of 2019 levels. TSA
(Transportation Security Administration) data recorded passenger numbers for
the month of May at c.90% of 2019 levels. During the period we have won
further stores, including 4 stores at Chicago O'Hare airport. Las Vegas
continues to perform strongly.

 

 

1 Equivalent month in 2019

2 Includes internet businesses

3 Proforma, constant currency

4 Constant currency

5 As reported

In our Rest of the World division, we are now seeing recovery across all our
markets, including Asia and Australia, with the strongest recovery in Europe.
The first two stores (both in Majorca) from our recent tender win in Spain
have now opened and are trading well. We anticipate opening a further 20 of
the 31 new stores won in Spain in time for our peak summer trading period this
year. We are in a strong position to capitalise on new space opportunities. We
have a strong tender pipeline and are in active discussions regarding a number
of tenders.

 

High Street

 

In High Street, total revenue in the 15 week period to 11 June 2022 versus
2019 was at 79%. This includes the impact from the cyber incident on Funky
Pigeon. We saw a good performance from our Platinum Jubilee ranges which
resonated well with customers, and our focus on front of store mega deals is
delivering good results.

 

Outlook

 

While the broader global economy remains uncertain, the Group is well
positioned to capitalise on the ongoing recovery in our key markets and take
advantage of the many opportunities ahead, including the 125 new stores won
and yet to open, and our new store formats and category development across
multiple geographies. Travel continues to perform strongly across all three
divisions and we expect this to be maintained into the peak summer trading
period. As a result, we now anticipate the full year outturn to be at the
higher end of analysts' expectations.

 

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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