WH Smith has warned of the potential impact of the conflict in Iran and across the Middle East to its travel outlets as passenger numbers travelling through the region reduce.
A first-half trading update this morning said the group was “mindful of the geopolitical uncertainty in the Middle East” and continued to monitor the situation.
WH Smith, which is still reeling from last year’s accounting scandal, added it remained focused on “what we can control, including executing against our clear strategic priorities and strengthening our focus on cost and cash discipline”.
Shares in WH Smith fell by 2.1% to 593.5p this morning.
Revenues at the group in the 26 weeks to 28 February increased by 2% year on year on a like-for-like basis.
In the UK, like-for-like sales also rose 2%, with revenues at airports hit by temporary store closures across all Heathrow terminals as the business refurbishes its shops. Revenues at airports increased just 1% in the half as a result.
Sales at train stations declined by 2% on a like-for-like basis against the ongoing subdued consumer landscape, with the fall slightly offset by 4% growth in hospitals.
Total revenues increased 10% in North America when stripping out currency movements, with like-for-like growth of 1%.
Like-for-like sales in the rest of the world also rose 6%.
WH Smith, which now operates solely as a travel retailer after selling off the troubled high street division, will be under new leadership next month as Leo Quinn joins as executive chairman. The former boss of Balfour Beatty is tasked with restoring investor trust following a challenging year.
WH Smith will announce its full interim results on 23 April.
No comments yet