WH Smith Shares Surge Despite High Street Sales Decline

WH Smith (LON: SMWH) shares jumped on Wednesday after the retailer reported strong revenue growth in its global Travel business, despite a decline in High Street sales. 

The stock climbed over 6% at the open following its latest trading update for the 21 weeks ending 25 January 2025. At the time of writing, it is trading at 1,263p a share.

The company reported total group revenue growth of 4% at constant currency, with Travel revenue rising by 8%. 

WH Smith’s Travel division continues to drive growth for the company, with its UK Travel segment seeing a 7% rise in total revenue, led by strong performance in airport stores. 

North America also showed an improvement, with revenue up 6% at constant currency and like-for-like sales growing 3%.

However, WH Smith’s high street sales dropped 6% during the period, with like-for-like sales declining 3%. Earlier this week, the company revealed it is exploring strategic options for its high-street business, including a possible sale.

In a statement responding to speculation, the company described the division as “profitable and cash-generative” but highlighted its transformation into a “focused global travel retailer” over the past decade.

Focusing on the positives, Chief Executive Carl Cowling said, “The Group has had a good start to the financial year, and we continue to see strong momentum across our core Travel business.”

“Our UK Travel business has delivered another excellent performance across all channels, as we continue to make good progress with the rollout of our one-stop-shop for travel essentials format,” he added. “In North America, we have seen a notable shift in like-for-like revenue growth.”

The company also announced the addition of 12 new stores in major U.S. airports, including Orlando and Portland, as part of its growing North American expansion. It now has a pipeline of 60 stores in North America.

Despite economic uncertainty, WH Smith remains confident in its growth outlook for 2025, with its focus firmly on expanding its successful Travel retail business.