Books, newspapers and stationery retailer WH Smith PLC (LON:SMWH) expects its full-year profits to be slightly ahead of expectations after it reported strong sales from its travel business over Christmas, while “spoof humour books” helped cushion sales on the high street.
The FTSE 250-listed firm said like-for-like sales for its travel business - which includes outlets at airports, railways stations, motorway services, and hospitals – were up 5% for the 21 weeks to January 21.
Stephen Clarke, WH Smith’s chief executive, said: “As a result of the performance in Travel we expect Group profit growth for the year to be slightly ahead of plan.”
WH Smith saw like-for-like sales at its high street business fall 3%, although Clarke said that that was in-line with expectations helped by “new seasonal stationery ranges and spoof humour books.”
Independent retail analyst Nick Bubb said: “Well, if you got one of the Ladybird “spoof humour books” at Christmas (eg 'Five go to Brexit Island') then you will be pleased to hear that they helped to replace the 'adult colouring books' craze that fuelled WH Smith’s Christmas trade a year ago”.
Overall sales up ...
WH Smith - which has more than 1,300 stores, mostly in the UK – said overall group revenues were up 1% on a like-for-like basis over the period, with total sales rising 2%.
The retailer’s boss said: "Looking ahead, 2017 is a significant year for us as we celebrate the 225th anniversary of our first store opening in 1792.
“While there is some uncertainty in the broader economic environment, we remain confident that the Group is well positioned for the year ahead as we continue to focus on profitable growth, cash generation and investing in new opportunities."
Nick Bubb said: “How far the 225th anniversary celebrations of the company help trade this year remains to be seen, but the City will be relieved by the strong Christmas trading performance."
In early trading, WH Smith was the top mid cap gainer, up over 7%, or 110p to 1,590p.