WH Smith PLC (LSE:SMWH) said it continued to perform strongly across all key travel markets as it approaches the peak trading period.
In a statement, the retailer said total travel revenue in the 13 weeks to 27 May 2023 was up 31% versus the prior year, meaning expectations for the full financial year have “modestly improved”.
Peel Hunt said: "We expect that consensus will rise modestly this morning and that should be enough to keep the shares going."
In its Travel business, the UK division continues to perform strongly, driven by category expansion, a focus on average transaction value, the success of InMotion, the travel essentials one-stop-shop format and the ongoing recovery in passenger numbers.
In the 13-week period, Travel UK total revenue was up 24% on last year.
Total revenue in the North America division was up 26% on last year while the Rest of the World division performed “extremely well” with revenue up 79%.
The firm said: “We are very well positioned for further growth across our Travel markets in the current financial year and beyond.”
Richard Hunter, head of markets at interactive investor, commented: “The travel business remains the driving force behind WH Smith’s fortunes and with the peak summer season approaching, the group is setting out its stall in anticipation.”
Shares rose 1.8% to 1,556p.