Health Care

WH Smith travel store sales overshadow high street as retailer hikes dividend

WH Smith travel store sales overshadow high street as retailer hikes dividend”

WH Smith generated higher sales from its travel shops than its high street stores for the first time in its 225-year history on the back of a surge in tourists splurging on Union Jack souvenirs and global growth.

And while travel trading profit rose 10 per cent, high street trading profit remained flat at £62m.

Shares fell 2% despite WH Smith announcing a 10% rise in its final shareholder dividend payout to 48.2p.

He said: "The travel business continues to perform well with strong revenue growth, up 9% in the year".

WH Smith has 582 travel stores across the United Kingdom, as well as a growing overseas footprint, with 233 global shops.

"While the economic environment remains uncertain, we are well positioned for the current year and beyond".

Fads such as spoof books (think Enid Blyton parody Five on Brexit Island) and adult colouring books have provided a boon to the retailer's high street sales in recent results, but its travel arm has been doing much of the heavy lifting.

WH Smith said it is targeting a further £9mln of cost savings for the next financial year.

Commenting on the results, Stephen Clarke, Group Chief Executive, said: "We have delivered a good performance across the Group".

He said the group had never been "overly obsessed with sales" at the high street division, instead focusing on keeping a lid on costs, growing margins and making best use of space.

Revenue for the segment was up 9%, overtaking its high-street business, which declined by 5%. This represents more than 60 per cent of the group's trading profits and includes £9 million from its growing global travel business.

"WH Smith's traditional town centre business has been struggling for years, as online competition heats up and high street footfall sinks", said Nicolas Hyett, equity analyst at Hargreaves Lansdown.

"Overall we like WH Smith's direction of travel".

Profit in travel was up 10 per cent to £96m. "The trend is only likely to continue".



Like this

Latest


12 October 2017
FTII students question Kher's appointment, call it 'conflict of interest'
Now Chauhan, in reaction to Anupam's appointment, told IANS that FTII needed a good administrator more than a good actor. However, the former actor reiterated that he was perhaps a victim of a political agenda.

12 October 2017
Teens Get Their Own Amazon Accounts, With Parents' Approval
Amazon has announced a new service that will open up its gargantuan ecommerce platform to millions more teenagers. Parents can choose not to approve each item their teens buy and instead set spending limits per order.

12 October 2017
Separatist Asiya Andrabi On Achievers' List, Mehbooba Mufti Orders Inquiry
The poster was put up on Wednesday in Kashmir's Kokernag town at an event being headed by BJP MLA Sajjad Gani Lone. She had been booked for celebrating Pakistan Day in 2015 under the Unlawful Activities Prevention Act.

12 October 2017
Ahmed Timol Was Pushed To His Dead, Court Ruling
During the review, a Pretoria court has heard from pathologists, former security officers and victims of apartheid brutality . The Timol family refused to accept that story and thousands of South Africans also believed that Timol had been murdered.

12 October 2017
Famous climber, Hayden Kennedy, kills himself after girlfriend dies in avalanche
SCARPA , a Boulder outdoors gear store, mourned Kennedy and Perkins in a Facebook post Tuesday. Kennedy was known for climbing the Southeast Ridge in Patagonia's Cerro Torre in 2012.

12 October 2017
Giroud turning heads in Milan and Turin
Juventus and Inter Milan are considering a move for Arsenal striker Olivier Giroud in January, according to Calciomercato . Argentine Mauro Icardi is the only recognised striker at Inter.

12 October 2017
Usa, la proposta choc di Trump: "Espandere l'arsenale nucleare"
Lo sostiene la Nbc , che ha rivelato in esclusiva il presunto contenuto di un incontro con i vertici militari e politici avvenuto la scorsa estate, grazie a tre fonti, presenti al vertice.

12 October 2017
Google to integrate Duo App to Android by default
How about other Android phones from major OEMs (Original Equipment Manufacturers) like Samsung, LG, Sony, Xiaomi and others? Google says it will add a function later that allows you to upgrade an ongoing voice call to video with a single tap.

12 October 2017
Canadian Pacific Railway Limited (NYSE:CP) Valuation According To Analysts
The stock of Canadian Pacific Railway Limited (USA) (NYSE:CP) has "Buy" rating given on Tuesday, July 11 by Stifel Nicolaus. The price/earnings ratio (P/E) is a market prospect ratio which calculates the value of a stock relative to its earnings.

12 October 2017
Lufthansa poised to sign Air Berlin deal
Spohr said that he expects that it will take up to one year for Lufthansa to fully integrate Air Berlin's aircraft and teams. Spohr told the Rheinischen Post he did not believe Lufthansa's deal with Air Berlin would result in higher airfares.



Recommended