W H Smith reports "good" first half performance, with revenue up 8%

W H Smith has reported a "good" first half performance, with total group revenue for the six-month period to 29th February up 8% year on year, to £926m (£859m in 2023), driven by its Travel division. As a result, it announced an interim dividend of 11p reflecting trading and what it called "the significant medium and long-term prospects for our global Travel business".

In a trading update, the retailer said it was "well positioned for peak summer trading period and on track to deliver on full year expectations".

Total revenue for the retailer’s global Travel stores was up 13% compared to last year, while UK Travel stores were up 15%.Travel stores in North America were up 13% and rest of the world (ROW) up 24%.

The UK Travel business also saw a 19% increase in trading profit, from £31m in the six months to February 2023, to £39m in the six months to February 2024. 

As of 29th February, W H Smith had 80 new Travel stores in the pipeline. The retailer expects to open 110 stores this financial year. High Street, however, saw sales and profits dip, from £266m to £256m, and £32m to £27m.

Carl Cowling, group chief executive, commented: “The group is in its strongest ever position as a global travel retailer. We have had a good first half and our businesses are well positioned for the peak summer trading period.

“Our Travel divisions are trading well and I am particularly pleased with the outstanding performance from our UK Travel business which has seen a 19% increase in trading profit. We continue to make excellent progress in this division, growing our space and broadening our categories as we transition to a one-stop shop for travel essentials.

“In North America, it has been a very active period where we have opened a further 13 bookshops. We have also now fully integrated InMotion into our core airport business. This will enable us to sell tech accessories more effectively across our North American airport estate and generate operational efficiencies.

“The second half of the financial year has started well, and we are on track to deliver full-year expectations. We are confident that 2024 will be another year of significant progress for the group.”