WH Smith PLC (LSE:SMWH) took a hit on Thursday morning after unveiling a 38% fall in operating profit for the first six months of the year.
Group pre-tax profit fell from £45 million to £28 million in the six months to February, the retailer announced on Thursday.
This was in spite of an 8% jump in revenue to £926 million, fueled by a 13% increase from WH Smith’s travel business, which has shops in airports and railway stations.
Profit from travel climbed 6% to £50 million, but fell 8% to £22 million in WH Smith’s high street business as revenue declined.
Eight high street stores were closed over the period, WH Smith said, taking the total number across the group to 506, as part of a long-running strategy to reduce focus on the high street arm.
“As we grow travel, this division is becoming a smaller part of the overall group,” the company added.
“Our strategy for our high street business is clear and consistent - to manage our space to maximise returns and maintain a flexible cost structure - and [this] remains as relevant today as it has ever been.”
Net 110 stores are expected to be opened this year, with strong travel trading seeing full-year guidance held.
Shares fell 7.9%.