WH Smith PLC sees small impact from Omicron but expects recovery to

WH Smith PLC (LSE:SMWH) said it has seen some impact from the Omicron variant of coronavirus but that it expects recovery to resume in its travel markets over the coming months.

“We are well placed for the key trading period in travel this summer and the ongoing recovery in our markets,” said chief executive Carl Cowling.

In a trading statement, the retailer said total revenue in the 20 weeks to 15 January 2022 amounted to 85% of revenue for the same period in 2019, before the COVID-19 pandemic struck.

The high street business traded in line with expectations, despite reduced footfall, with a strong performance from online businesses funkypigeon.com, cultpens.com and whsmith.co.uk.

High street revenue in the 20-week period was equivalent to 87% of 2019 figures.

In the travel business, key markets showed “a consistent and encouraging” recovery prior to the emergence of Omicron, with total revenue amounting to 83% of 2019 levels in the period.

In the UK, travel revenue was 70% of 2019 revenue.

The company has opened 16 InMotion technology stores in UK airports and expects to open the remaining 14 stores before the peak summer trading period.

In North America, air passenger numbers continued to improve and the resorts business in Las Vegas also benefited from improved visitor numbers, WH Smith said.

In the period, it won tenders for a further 13 new stores, including three InMotion stores, and a significant tender at the new Kansas City airport to operate nine stores for 15 years.

The company has now won tenders for over 60 stores in North America due to open over the next three years.

Overall revenue in North America for the 20-week period on a proforma basis was at 92% of 2019 levels.

Shares climbed 4.54% to 1,623.00p in opening trade.