U.K. bookstore chain WH Smith reported that total group revenue was up 7%, to £1.92 billion for the year to August, up from fiscal 2023's £1.79 billion. Profit before tax rose 16% to £166 million.

As has become the norm, the Travel division was the standout performer, with total revenue up 11%, to £1.6 billion, with Travel UK up 12%, North America up 9%, and Rest of the World up 18%: profits surged to £189 million, up from £164 million last year. Meanwhile the weaker High Street division reported profits flat at £33 million on a 4% decline in sales to £452 million.

WH Smith has been aggressively expanding its presence in mostly U.S. airport bookstores. Sales in fiscal 2024 in the U.S. were £401 million. In terms of new stores, more than 90 stores are set to open in the Travel group—including around 60 in North America—with 40 expected to open this financial year.

"Our most exciting opportunity for growth is in North America," chief executive Carl Cowling said. "We are very pleased to have recently won some significant new airport business, including wins at Dallas, Denver and Washington Dulles airports, and we are the preferred bidder for a further 15 stores across two major US airports. Our store opening program is on track and we have a new store pipeline of c.60 stores already won."

Years of contrasting fortunes between the Travel and High Street divisions mean that the Travel division is now roughly three times the size of the High Street business.

"Our strategy for our High Street business is clear and consistent: to manage our space to maximize returns and maintain a flexible cost structure," said the results statement. "The strategy remains as relevant today as it has ever been and focuses on delivering robust and sustainable cash flows and profits."

"We utilize our space to maximize returns in ways that are sustainable over the longer-term," the statement continued. "We have extensive and detailed space and range elasticity data for every store which we use to allocate space in categories. We continue to manage our space in High Street to maximize returns and maintain a flexible cost structure and it continues to deliver good results."

A longer version of this story ran in the U.K. newsletter, BookBrunch.