Latest News

UK retailer WH Smith posts 7% annual revenue development fuelled by travel demand

WH Smith reported a higher yearly profits on Wednesday as robust travel need moved sales of its products ranging from sandwiches to books, sending out the British seller's shares up 11%.

WH Smith, an over 230-year-old brand, stated trading in the brand-new financial year up until now remained in line with expectations.

CONTEXT

Strong guest numbers in the 2nd half of the year ended Aug. 31 supported demand for WH Smith's item offerings - ranging from travel accessories, food and drinks to health and charm - at airports.

SSP Group, which operates food outlets across airports and rail stations stated in July, it was positive about more individuals carrying out leisure travelling.

WHY IT'S IMPORTANT

The travel industry has stayed durable in the face of high inflation and tight budget plans, with information showing record air passenger numbers in the UK and the U.S. during the summer months.

Several sporting occasions, consisting of the Olympics, Wimbledon and European Soccer Champion likewise added to more people travelling to Europe.

CRUCIAL NUMBERS

Revenue for the year rose 7%, buoyed by strong travel need throughout its UK and U.S. markets and the introduction of brand-new items.

The firm likewise stated it got profits of 85 million pounds ($ 111.2 million) from a buyout of its pension trust while releasing a 50 million pound share buyback.

MARKET RESPONSE

Shares in the retailer rose 11% to a nearly nine-month high of 1,363 cent per share in early trade.

WHAT'S NEXT

The London-listed firm will release its preliminary results for the year on Nov. 14.

(source: Reuters)