Wh Smith parts increase when investors welcome potentially high street sell-off | Beginner
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Wh Smith parts increase when investors welcome potentially high street sell-off | Beginner

whsmith store sign high street

Wh Smith tried to justify a decision to lift “For sale” Flag over their High Street stores this week with one Strong set of results for the group’s travel arms.

FTSE 250 company reported an increase in revenue by 6% in the travel department, increased by higher foot cases in its airport and train station stores.

However, the sick high street chain registered a similar sales case of 3% during the 21 weeks to January 25.

In total, the group reported an increased by 3% to the top line over the entire business compared to the same period one year before.

Its share price rose by 8% after the results on Wednesday, giving their total profit for the week to more than 12% as investors welcomed the news about the potential for a more focused travel group.

“It’s no coincidence that announced Smith the potential sale of its British High Street business Just before Reports good trade For the travelers, ”said Russ Mold, investment director at AJ Bell. “It needed the core business in the future to push all cylinders to justify the strategic change.”

While many investors are keen on a more streamlined business, it remained doubt whether WH Smith could negotiate a good price given the current difficulties for British retail.

Broker Peel Hunt estimated that the business can be worth approximately £ 100 million.

“It is hardly as if this is a bold business, with lots of ineffective processes and shop staff who bogs around. On the contrary, “Preel Hunt -Analyst Jonathan Pritchard added.

“Store closures can be material in someone else’s hands, but when Smith himself, clearly, has a good sight line on how to get the most out of the chain, and it is unlikely that someone else has the silver ball to regalvanize profitability here. “

Over in North America, Smith’s Travelarm regains speed with similar revenue 3%. The American operations now have a pipeline of about 60 stores to open, after winning eight places at Orlando Airport and four more in Portland.

“Wh Smith’s future is now resting on getting travelers to pay the price for convenience,” Mold said. “Its stores at Transport Hubs benefit from a caught audience – people don’t have time to shop around, they simply want to pick up something quickly before taking a train or flight.”