Across its global travel divisions, WHSmith saw strong momentum, with revenue up 8% on 2024 on a constant currency basis.

WHSmith has announced its trading update for the 21 week period to 25 January 2025, noting a good start to the financial year with strong growth across all travel divisions, and acceleration in like-for-like revenue in North America.

Over the 21 week period total Group revenue was up 4% on a constant currency basis, compared to the prior year.

In Travel UK, its largest division, total revenue in the 21 week period was up 7% and also up 7% on a like-for-like basis, and the company said it will continue to identify opportunities to roll out its one-stop-shop for travel essentials format, with profitability boosted by its new food and extended health and beauty ranges.

Carl Cowling, Group Chief Executive said: “The Group has had a good start to the financial year, and we continue to see strong momentum across our core travel business. Our UK Travel business has delivered another excellent performance across all channels, as we continue to make good progress with the rollout of our one-stop-shop for travel essentials format.

North America

In North America, revenue for the 21 week period was up 6% compared to the prior year on a constant currency basis, and up 3% on a like-for-like basis, and its Travel Essentials business,  the largest and fastest growing part of our its American division, saw total revenue on a constant currency basis up 20% and up 7% on a like-for-like  basis, compared to the prior year.

“In North America, we have seen a notable shift in like-for-like revenue growth, up 3%, as a result of the actions we have taken to enhance our ranges and introduce new categories.”

Cowling highlighted recent commercial wins at Orlando Airport – where it now operates eight stores, as well as four stores at Portland Airport and a further 60 across North America in the pipeline.

The performance of its smaller businesses, InMotion and Resorts saw minimal change, with revenue in the first 21 weeks down 1% and flat respectively.

Cowling continued: “I would like to thank our colleagues across the Group who go above and beyond to serve the millions of customers that shop with us. The Group is in a strong position, and while there is some economic uncertainty, we are confident of another year of good growth in 2025.”

We continue to actively analyse our space to enhance our ranges, introduce new categories and review space allocation. This has delivered encouraging results. We are seeing a number of good opportunities to win and open more Travel Essentials stores in Air.

Total revenue in North America reflected 10 store closures across two major hotels in Las Vegas, and the closure and refurbishment of 5 stores across Charlotte and Denver airports. The trading update highlighted these changes as par and parcel of an ongoing strategy to improve the quality of its store estate and to focus investment in higher growth airport travel essentials stores.

Rest of the World (ROW)

Total revenue for the 21 week period was up 16% on a constant currency basis, compared to the prior year, and up 9% on a LFL basis.

In the Rest of the World, WHSmith said it remained well positioned to benefit from further opportunities as more space becomes available.

High Street sale speculation

The retailer also provided a statement addressing recent speculation about the sale of its high street business.

As reported by TRBusiness WHSmith recently gave a strong indication it is considering selling its High Street business to focus on travel retail, as it noted: “WHSmith confirms that it is exploring potential strategic options for this profitable and cash generative part of the Group, including a possible sale.

Over the past decade, WHSmith has become a focused global travel retailer. The Group’s Travel business has over 1,200 stores across 32 countries, and three-quarters of the Group’s revenue and 85% of its trading profit comes from the Travel business. There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”

In its UK High Street division, like-for-like revenue was down 3% compared to the prior year, which WHSmith noted was in line with its expectations.

The UK retailer exited the Christmas trading period with a clean stock position, and said it was on track to deliver targeted full year cost savings of £11m.

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