Warning from WH Smith – as profits slump
WH Smith’s 2022 pre-tax profit is likely to be at the lower end of market expectations, the retailer warned as a slow and uncertain recovery in global tourism and travel hubs like airports and train stations – one of its key sectors – is severely restricted by the pandemic.2022 pretax profit was expected to be in the range of £70 million to £135 million (€81 million – €161 million).
Shares in the company, which has some outlets in Ireland, were down nearly 7 per cent in morning trade, underperforming London’s broader midcaps index, according to Reuters.
The global travel and tourism sector does not expect to fully recover from the Covid-19 crisis until at least 2023 as a result of uncertainty related to new virus variants and quarantine measures.
WH Smith’s revenue globally from its travel-related stores, its biggest source of income, was still only at 55 per cent of 2019 levels in the six months ending August 31st.