WH Smith revenue dives 85 per cent during coronavirus lockdown
WH Smith reported an 85 per cent drop in revenue for last month after the coronavirus lockdown forced the retailer to close high street and transport hub stores.
The newsagent chain said travel revenue plunged 91 per cent due to travel bans around the world, and high street revenue was down 74 per cent.
WH Smith has closed most of its stores during the UK coronavirus lockdown, except for the 203 that include Post Offices and 130 shops in hospitals.
The company reported a strong online performance, saying the sale of books soared 400 per cent in April as consumers were stuck at home.
WH Smith, which said it will not pay a dividend this year, said plans to reopen the rest of its stores are on track for the next six months.
Chief executive Carl Cowling said: “The emergence of Covid-19 and the associated global pandemic has affected all of us in ways that were unimaginable only a short while ago.
“I have enormous admiration for how our colleagues across WH Smith have responded to these unprecedented times and I would like to thank them all.”
He added: “Since March, we have seen a significant impact on our business as a result of Covid-19, with the majority of our stores closed around the world.”
The company has liquidity reserves of around £400m and has secured eligibility for the government’s Covid Corporate Financing Facililty.
WH Smith also this morning published financial results for the six months to 29 February, before the coronavirus crisis escalated in the UK.
Group profit before tax fell three per cent to £63m, driven by an eight per cent fall in high street trading profit. The retailer’s travel business reported an 11 jump in profit.