Proactive Investors - WH Smith’s update next week should continue the recent trend of a booming travel business held back by a high street newsagent’s chain in managed decline.
Interim profits fell overall but travel was up 6% to £50 million with all the weakness on the high street.
Investors will hope for another good quarter from travel this year to offset the high street struggles.
“As we grow travel, this division [newsagent] is becoming a smaller part of the overall group,” the company added in April.
Then, WH Smith (LON:SMWH) said a net 110 stores would open this year reflecting travel expansion and the retrenchment on the high street.
At some point, the newsagent business might need some more decisive action but not just yet to judge from the comments alongside the update.
“Our strategy for our high street business is clear and consistent - to manage our space to maximise returns and maintain a flexible cost structure - and [this] remains as relevant today as it has ever been.”