Travel restrictions dampen WH Smith’s annual results
WH Smith has reported that its annual results fall far short of pre-pandemic levels as Covid-19 travel restrictions continue to bite.
In a preview of the group’s annual financials, it revealed that total revenue for the second half of 2021 was at 65 per cent of pre-covid levels, climbing to 71 per cent in the eight weeks leading up to August 31.
The slight uptick was driven by the easing of lockdown restrictions which helped to boost sales from outlets in travel locations, such as airports and stations, that were hit harder than the company’s high-street stores.
WH Smith’s revenue for its UK airport stores in H2 of 2021 reached a mere 17 per cent of 2019 levels with the figure jumping to 30 per cent over Summer as international travel restrictions eased. Revenue across WH Smith’s portfolio of travel stores reached just 38 per cent of pre-pandemic levels in H2.
Despite the dip the company remains confident that revenue will return to pre-pandemic levels in the medium term. A spokesperson said that while “the trajectory of the recovery in travel remains uncertain” revenue could return to pre-pandemic levels in the next two to three years.
WH Smith even has plans to open four additional InMotion stores in UK airports taking the total number of stores to 22.
Following the trading update, which included a revenue forecast at the lower end of market expectations for the 2022 financial year, the company’s share price is down 3.09 per cent.
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