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Investing.com -- WH Smith on Wednesday reported continued strong performance in its global travel retail business for the 13-week period ending May 31, 2025, with total travel revenue up 7% year-over-year on a constant currency basis.
The company said it remains on track to meet full-year expectations, as outlined in its April interim results.
Analysts at RBC Capital Markets maintained a neutral view on the update, noting stable trends since the first half of the year.
While a minor slowdown in the U.S. was observed, as expected, performance remained robust in the United Kingdom (TADAWUL:4280) and other international markets. The strengthening British pound also influenced overseas performance.
In the U.K., WH Smith’s Travel division posted a 6% rise in like-for-like revenue, slightly below RBC’s forecast. Both Air and Rail segments reported LFL growth of 6%.
The company continues to invest in its domestic store portfolio, rolling out new one-stop-shop formats and standalone bookshops.
In North America, total revenue rose 7% on a constant currency basis, while LFL revenue grew 2%, down slightly from 3% growth in the first half.
The Air segment, which comprises most of the region’s business, saw a 4% LFL increase and 7% total growth.
The company attributed the gains to strong passenger spend and optimized store layouts. Ten new stores opened in U.S. airports during the period, including Washington.
The Rest of the World division delivered a 12% increase in total revenue and a 7% LFL revenue gain, slightly ahead of analyst expectations. Growth was supported by improving passenger traffic across various regions.
RBC noted that approximately 2 percentage points of group revenue growth came from increased retail space, a figure expected to rise in the fourth quarter as WH Smith accelerates expansion.
The brokerage praised WH Smith’s “forensic approach to retailing” and reiterated its forecast of at least £142 million in group profit before tax (excluding High Street and Funky Pigeon).
On March 28, WH Smith announced plans to divest its U.K. High Street business, with completion expected by the end of June. This move will position WH Smith as a focused travel retailer.
Despite significant U.K. market penetration, the company holds just 3% of international market share.
A strong pipeline of new airport stores remains in place, though competition from Avolta and Paradies Lagardere is intense.
Ahead of its peak summer season, WH Smith maintained its guidance and said it is well-positioned to capitalize on continued growth in global travel retail.