WH Smith Reports Growth in Travel Business amid High-Street Challenges

WH Smith has announced a 7% increase in its UK travel sector for the six-month period concluding on February 28, 2025. This positive trend follows the divestiture of its high-street business, with profits for the travel division rising to £40 million, up from £37 million in the same interval last year. Overall revenue for the company climbed to £384 million from £360 million compared to the previous year.

Contrast Between Travel and High-Street Operations

The robust performance of the travel segment stands in stark contrast to the struggles of the high-street operations, which have faced significant downturns. WH Smith disclosed that it will rebrand its high-street business as TGJones after its sale to Modella Capital for £76 million. The interim report cited a sharp decline in profits from the high-street sector, falling from £22 million in the earlier six months to just £15 million—a 32% decrease.

Expansion in North America

In addition to the performance in the UK, WH Smith’s travel business also experienced a 7% profit growth in North America. The company announced the successful bids for over 90 new store openings within the travel category, with more than 70 of these located in North America. Furthermore, WH Smith anticipates the launch of more than 60 stores in the current financial year.

Major Contract and Market Presence

WH Smith recently secured a significant contract at a major airport on the US East Coast, reinforcing its position as a key player in providing travel essentials in that region.

Company Future Outlook

Carl Cowling, Group Chief Executive, stated, “The group has had a good first half, with consistent like-for-like growth across all our Travel businesses, and we are well-positioned for the peak summer trading period.” The reported travel trading profit increased by 12% to £56 million, and in recognition of the positive trajectory, the Board has declared an interim dividend of 11.3p.

Cowling further elaborated, “Our UK Travel business has had a strong half, with trading profit 8% ahead of last year.” With ongoing improvements in their retail space, the company is beginning to reap the benefits and has recorded a 3% increase in like-for-like revenue in North America. He expressed pride in recently securing a significant contract at a major East Coast airport and recognized the team’s efforts during this busy period.

Conclusion and Expectations

The initial phase of the second half of the financial year is off to a positive start, and WH Smith remains on track to achieve full-year outcomes that meet market expectations. While the company acknowledges the heightened geopolitical and economic uncertainties, it is confident in its ability to capitalize on emerging growth opportunities in global travel retail.