UK's WH Smith posts Q3 sales rise on strong travel demand
British retailer WH Smith on Wednesday reported a 5% rise in total like-for-like revenue for the third quarter, with North America up 2%, driven by travel demand that lifted sales across its product range despite ongoing macroeconomic uncertainties.
The pickup in sales comes amid concerns over North American travel at a time when U.S. tariffs have led to global turmoil and muted growth prospects for companies.
Still, WH Smith said it expects steady travel demand, banking on a strong summer to drive footfall in transit areas, and maintained its annual forecast, saying it was well positioned for the peak summer period.
In contrast, airport food outlet operator SSP Group recently flagged heightened uncertainty, particularly in its North America business.
"Although there is still a level of macro uncertainty regarding the U.S., in our view, the Q3 North America LFL performance should ease investor concerns in the near term and reassure that the U.S. is not currently experiencing a dramatic slowdown," said analysts at J.P. Morgan.
WH Smith, a more than 230-year-old brand, operates about 1,200 stores in airports and train stations across 32 countries.
The company sold its UK high street business to Hobbycraft-owner Modella Capital earlier this year to position itself as a pure-play travel retailer.
The company reported a 7% rise in total revenue on a constant currency basis for the 13-week period ending May 31.
It also opened 10 new stores in North America during the quarter.
Shares were up 2.9% at 1,054 pence on Wednesday. However, the stock has fallen around 14% so far this year.
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