Last checked at 15 Jun 2022 07:00
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 Revenue1 | |||
Q1 | Q2 | 15 weeks to 11 June 2022 | |
Travel | 83% | 81% | 123% |
High Street2 | 87% | 84% | 79% |
Group | 85% | 83% | 107% |
Travel
% of 2019 Revenue1 | |||
Q1 | Q2 | 15 weeks to 11 June 2022 | |
UK | 69% | 72% | 104% |
North America3 | 91% | 91% | 111% |
Rest of the World4 | 41% | 48% | 88% |
Total Travel5 | 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