WH Smith benefits from strong growth at travel business
WH Smith has said its full year performance has been in line with expectations with group sales climbing by 7% and like-for-like sales up 5%.
In a pre-close trading update for the 12 months to 31 August, the company said it benefited from a strong performance at its travel business where total and like-for-like sales rose by 10% and 7% respectively.
The travel growth was driven by category development and enhanced ranges, particularly in food and drink, health and beauty, and technology. In the UK, the business is working to create a one-stop-shop for travel essentials which it says is delivering strong results. This has included the introduction of a new food-to-go offering called Smith’s Family Kitchen which is performing ahead of expectations.
Meanwhile, WH Smith said its travel businesses in North America and the rest of the world have continued to show good momentum.
In contrast, sales at WH Smith’s high street stores fell by 4% on a total basis and by 2% like-for-like which was in line with expectations. During the second half of the year, the business opened 30 Toys “R” Us shop-in-shops within its stores and expects to launch a further 37 ahead of the peak Christmas period to bring the total to 76.
Carl Cowling, WH Smith group chief executive, said: “We have ended the financial year in a strong position, delivering a performance in line with our expectations with good growth across our Travel businesses. Our UK division performed particularly well over the peak summer trading period.
“We are also today announcing the launch of a £50 million share buyback, which reflects strong ongoing cash flow, the receipt of the pension fund buyout cash return, as well as the strength of our balance sheet, with leverage now within our target range.
“Our colleagues have worked extremely hard to deliver these results over what has been a very busy summer, and I would like to thank them for their contribution to the group’s success.”
