(Reuters) – British retailer WH Smith said on Wednesday it expects its 2021 performance to be slightly ahead of its prior outlook, as its North American travel business performed well in the last two months, with sales at 93% of 2019 levels.
The company, which sells books, travel and tech accessories at train stations, airports and workplace kiosks, however, warned profitability for the year ending August 2022 will be at the lower end of market expectations, due to charges and uncertainty in travel recovery.
“While there will be a return to good levels of profitability in the year ending August 2022, the trajectory of the recovery in travel remains uncertain,” the company said.
WH Smith, which has been hit by the travel slump due to COVID-19 restrictions, said it remains confident of revenue returning to pre-pandemic levels in the next two to three years.
The company’s shops in UK airports and train stations have also seen signs of a gradual recovery since restrictions were lifted in July, despite passenger numbers remaining significantly low.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta)
