TIDMSMWH
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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END
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