WH Smith (LSE:SMWH), the travel retailer, said full-year headline group profit before tax and non-underlying items is expected to be around £75m for the year ended 31 August, in line with expectations.
The figure reflects lower trading margins from increased promotional activity, reduced brand marketing and inflation, offset by central cost cuts and lower interest costs.
UK revenue rose 7% in the fourth quarter, with like-for-like sales up 4%, led by an 8% like-for-like uplift in the Hospital channel and 2% growth in Air on higher passenger numbers and spend.
North America total revenue grew 5% in the quarter but like-for-like sales fell 3%, with Air Travel Essentials down 1% and InMotion down 3% on softer consumer demand and lower passenger volumes.
Resorts revenue fell 26% on lower visitor numbers and continued rationalisation of the fashion store estate.
Rest of World revenue declined 4% (6% at constant currency) as store closures continued; the group has exited Norway, agreed to leave Denmark and Sweden in early 2027, and will exit the Netherlands on lease expiry in 2027.
Net debt is expected to be around £325m as at 31 August, with leverage of about 2.0 times, following the £103m net proceeds raised through the 10 June equity placing.
The group completed the sale of Cult Pens in early September.
WH Smith will report preliminary results for the year ended 31 August on 12 November.
News Intelligence what this means for the company
WH Smith guided to £75m full-year profit, matching consensus, as UK travel retail strength (4% like-for-like growth, 8% in hospitals) offset North American weakness (3% like-for-like decline in Air Travel Essentials and InMotion on softer demand). The profit figure reflects margin pressure from promotional activity and inflation, partially offset by cost cuts. This represents a stabilization after the company cut its profit outlook and raised £103m in June, though North America remains a drag on the turnaround.
Hitting guidance is a baseline, not a catalyst—the real test is whether North America's 3% like-for-like decline signals a bottoming or continued deterioration. UK strength is real but concentrated in travel (hospitals and airports), leaving the core high-street business unproven; Rest of World exits (Norway, Denmark, Sweden, Netherlands) suggest ongoing portfolio rationalization rather than growth. Leverage at 2.0x post-placing is manageable, but the turnaround remains multi-year and execution-dependent.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
