WH Smith shares soar after profit forecast hike

Shares in British books, newspapers, and stationery retailer WH Smith soared almost 6% after it rose its profit forecast and reported strong sales from its stores at airports and train stations over the Christmas period.

The company, which operates more than 1,300 stores, mostly in the UK, said comparable group sales were up 1% in the 21 weeks to January 21, with total sales rising 2%.

Sales at its travel division, which comprises outlets at airports, railway, and motorway service stations as well as hospitals and workplaces, rose 10%, helped in part by currency movements as the company operates over 190 shops abroad.

“As a result of the performance in Travel we expect group profit growth for the year to be slightly ahead of plan,” CEO Stephen Clarke said in a trading statement.

RBC Capital Markets analysts said strong growth in travel against tough comparisons so early in the year was encouraging.

The company’s financial year ends in August.

However, the group, which will celebrate its 225th anniversary this year, said comparable sales in its high street business were down 3% with total sales falling 4%.

Its travel business has consistently outperformed the high street unit, owing to increased competition from other retailers and supermarkets and online shopping.

WH Smith reported its first rise in group like- for-like sales in 12 years last October.