WH Smith Reports Travel Growth in Early 2025 Trading Update

January 28, 2025 11:35 PM PST | By Team Kalkine Media

WH Smith Reports Travel Growth in Early 2025 Trading Update — Image source: Shutterstock

UK Travel Business Fuels Growth

The UK Travel division, the company's largest segment, posted a 7% increase in total revenue, building on the strong momentum from the previous year. Like-for-like revenue also rose 7%, highlighting continued demand for travel essentials.

WH Smith attributes this success to its one-stop-shop format for travel necessities, as well as the expansion of food and extended health and beauty ranges, which have contributed to increased profitability. The company remains focused on key growth drivers, including:

Expanding retail space to enhance customer convenience.
Increasing average transaction value (ATV) and passenger spend.
Optimizing EBIT margins while benefiting from rising passenger numbers.

The Air travel segment continues to outperform expectations, with revenue growth outpacing passenger volume increases, indicating strong demand and effective pricing strategies.

Share Buyback Progress and Financial Strength

Following the announcement of a £50 million share buyback program in September 2024, WH Smith has successfully repurchased 1.4 million shares for a total consideration of £17.5 million as of 28 January 2025. This reflects the company's commitment to enhancing shareholder value while maintaining financial flexibility.

Optimistic Outlook for 2025

Despite some economic uncertainties, WH Smith remains confident in its ability to deliver another year of strong growth. The company’s continued investment in travel retail, space expansion, and product diversification positions it well for sustained profitability.

Investors and analysts will gain further insights into the company’s financial health when WH Smith announces its 2025 Interim Results on 16 April 2025.

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