WH Smith PLC (LSE:SMWH) has reported positive trading in its travel business, offsetting struggles on the high street and placing it in a strong position ahead of a busy summer.
Sales in the company’s travel business, which relates to WH Smith’s sites found in airports, hospitals and rail stations, rose by 8% compared to 2023 during the 13 weeks to June 1.
In a statement, the group said: “The transformation of the business to a one-stop-shop for travel essentials is delivering strong results, increasing average transaction values and returns.”
WH Smith said it expanded its food-to-go ranges, launching the new brand Smiths Family Kitchen in more than 300 sites.
Travel revenues from the UK rose 9%, while sales in the US were up 3%, but it was a 15% surge from its ‘Rest of the World’ travel business which boasted the largest year-on-year growth.
“Looking ahead, the Group is well positioned as we enter our peak summer trading period. Good trading momentum continues across all three Travel divisions,” the company added.
Meanwhile, the group’s high street business continued to shed sales, down 4% year-on-year during the quarter.
Despite the weakening business, comments from its last update signify that management hasn’t given up on the high street quite yet.
“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,” it said.