WH Smith PLC (LON:SMWH) said it is planning a gradual re-opening schedule across its international territories, UK travel and high street channels.
The FTSE 250-listed firm has been operating its online platform as well as around 333 stores located in hospitals and post offices in the UK, but revenue slumped 85% in April as expected due to closures and low levels of visitors in the active shops.
The newsagents’ chain is to open a new flagship store at Heathrow Airport in the second half of the year, adding it is “well positioned” to benefit from other shop closures in travel locations.
READ: WH Smith raises £166mln in share placing amid coronavirus disruption
It is also expanding its presence in another two Marks & Spencer Group PLC (LON:MKS) stores.
The firm expects a gradual improvement in air traffic from the autumn initially led by domestic travel, particularly in the US where it accounts for 80% of total passengers, followed by regional, international and inter-continental passengers.
Rail is also expected to see a recovery in the autumn, but some analysts see it as an overly optimistic forecast.
"To get back on its feet WH Smith needs airports and train stations to be busy and global travel to be whirring back into action. It suggests that could start to happen in the autumn but this could prove to be over-optimistic," said Russ Mould, investment director at AJ Bell.
“For now, it must simply rely on people buying books through its website, steady sales through its hospital stores and Post Office concessions luring people into its stores in the hope they also pick up a few more products.”
As of 12 May, the retailer had £400mln in the bank and a new £120mln banking facility, while it is eligible for the government’s Covid Corporate Financing Facility.
In the six months ended 29 February, group revenue advanced 7% to £747mln with profit before tax down 3% to £63mln.
The dividend has been suspended to save money during the crisis.
Shares dipped 1% to 907.32p on Thursday morning.
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