(Reuters) -British retailer WH Smith on Wednesday reported a 5% rise in total like-for-like revenue for the third quarter, with North America up 2%, driven by travel demand that lifted sales across
WH Smith Sees 5% Revenue Growth in Q3 Fueled by Travel Demand
(Reuters) -British retailer WH Smith on Wednesday reported a 5% rise in total like-for-like revenue for the third quarter, with North America up 2%, driven by travel demand that lifted sales across its product range despite ongoing macroeconomic uncertainties.
WHY IT'S IMPORTANT
The pickup in sales comes amid concerns over North America travel at a time when U.S. tariffs have led to global turmoil and have muted growth prospects for companies.
Still, WH Smith said it expects steady travel demand, banking on a strong summer to drive footfall in transit areas and maintained its annual forecast saying it was well positioned for the peak summer period.
In contrast, airport food outlet operator SSP Group recently flagged heightened uncertainty, particularly in its North America business.
KEY QUOTE
"Although there is still a level of macro uncertainty regarding the US, in our view the Q3 North America LFL performance should ease investor concerns near term, and reassure that the U.S. is not currently experiencing a dramatic slowdown," said analysts at J.P.Morgan.
CONTEXT
WH Smith, a more than 230-year-old brand, operates about 1,200 stores in airports and train stations across 32 countries.
The company sold its UK high street business to Hobbycraft-owner Modella Capital earlier this year to position itself as a pure-play travel retailer.
BY THE NUMBERS
The company reported a 7% rise in total revenue on a constant currency basis for the 13-week period ending May 31.
It also opened 10 new stores in North America during the quarter.
MARKET REACTION
Shares were up 2.9% at 1,054 pence on Wednesday. However, the stock has fallen around 14% so far this year.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Sumana Nandy)
