# WH Smith warns on 2022 profit due to slow travel recovery
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: WH Smith 2022 profit warning due to slow tourism recovery
Meta Description: WH Smith anticipates 2022 profit to be at the lower end of market estimates due to slow global tourism recovery impacting its travel stores.
URL: https://financedigest.com/wh-smith-warns-on-2022-profit-due-to-slow-travel-recoveryhtml

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By Yadarisa Shabong

(Reuters) -WH Smith’s 2022 profit is likely to be at the lower end of market expectations, the British retailer warned on Wednesday as a slow and uncertain recovery in global tourism squeezes its stores in travel hubs like airports and train stations.

The company’s 2022 pretax profit was expected to be in the range of 70 million to 135 million pounds ($96-186 million), according to a company-compiled consensus of analysts estimates.

WH Smith highlighted, though, that a quicker recovery in its North American travel [stores in the last two months meant that the group’s 2021 performance would be slightly better than market expectations of a pretax loss of 68 million](https://www.financedigest.com/uk-budget-fashion-chain-primark-to-invest-140-million-stg-in-stores.html "UK budget fashion chain Primark to invest 140 million stg in stores") pounds.

Shares in the company, which [sells books](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time"), travel and tech accessories and also has stores on high streets, were down nearly 7% in morning trade, underperforming London’s broader midcaps index.

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](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector") related to new virus variants and quarantine measures.

WH Smith’s [revenue globally](https://www.financedigest.com/generic-oncology-drugs-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Generic Oncology Drugs Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") from its travel-related stores, its biggest source of income, was still only at 55% of 2019 levels in the six months ending Aug. 31.

JP Morgan Cazenove analysts downgraded the group’s 2022 and 2023 estimates for pretax profit due to the slower-than-expected recovery in global travel, and said didn’t expect its underlying [profitability to return](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease") to pre-pandemic levels until 2024.

WH Smith said that [finance charges related to its bond issue in April would also affect its profitability](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") in 2022.

($1 = 0.7268 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta and Pravin Char)


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