Avolta posts quarterly sales growth, shrugs off North America slowdown

By Anastasiia Kozlova and Ozan Ergenay

(Reuters) -Swiss travel retailer Avolta's first-quarter turnover rose 5.3% organically as strength in other regions offset softer growth in North America, it said on Thursday, confirming its full-year outlook.

The company, which runs shops at airports, on cruise liners, in seaports and in other tourist locations worldwide, posted core turnover of 3.05 billion Swiss francs ($3.63 billion) for the quarter, up from 2.78 billion francs a year earlier.

"The organic growth and unchanged outlook should be taken positively in the context of increasing concerns over the state of travel demand over the last two months," JPMorgan said.

Shares rose 2.5% in Julius Baer pre-market trade following the results.

Avolta's stock has climbed 23% since the start of the year, fuelled by investor confidence in its diversification across channels and regions, particularly amid uncertainty in the U.S. travel market.

U.S. consumer confidence recorded its sharpest drop in nearly five years this April, a sixth straight monthly decline.

That trend has been compounded by persistently high inflation and mounting concerns over the economic impact of potential tariffs.

North America remains Avolta's second-largest market, accounting for 32% of its turnover in 2024.

"While North America faced headwinds due to lower traffic volumes in (the first quarter), performance in other regions more than compensated," CEO Xavier Rossinyol said in a statement.

In North America, core turnover for the quarter reached 991 million Swiss francs, up from 974 million francs in the same period last year.

"We are actively monitoring the geopolitical evolution, mitigating against potential impacts as needed with a continued focus on growth and profitability," Rossinyol added.

Vontobel analyst Arben Hassanaj said ahead of results that travel "continues to show fairly robust spending trends despite higher comps and heightened uncertainties, especially in the U.S.", which he said should support Avolta's execution on its mid-term targets.

The company also confirmed those targets on Thursday.

($1 = 0.8394 Swiss francs)

(Reporting by Anastasiia Kozlova and Ozan Ergenay in Gdansk; Editing by Sherry Jacob-Phillips and Jan Harvey)