WH Smith expects to close the financial year to 31 August 2026 with a headline pre-tax profit, before non-recurring items, of approximately £75 million, broadly in line with expectations, supported by a strong summer season and the first steps taken as part of the group's transformation plan.
In the fourth quarter, overall revenue increased 4% compared to the same period in 2025, while like-for-like growth stood at 2%. For the full year, the group's revenue increased 5%, both at current and constant exchange rates, with comparable sales up 2%.
Profitability was, however, impacted by increased promotional activity, reduced investments in brand marketing and inflationary pressures, factors partially offset by the containment of central costs and the reduction in financial charges.
In the UK, the company's main operating area, fourth-quarter revenue grew 7%, up 4% on a like-for-like basis. For the full year, revenue increased 4%, driven by operations in airports, hospitals and train stations.
The UK airport channel closed the quarter with revenues up 7% and comparable sales up 2%, thanks to increased passenger traffic and higher average spend per customer. The hospital sector performed even more dynamically, posting a 9% increase, with an 8% increase on a comparable basis, while railway station revenues rose 5%.
During the year, WH Smith opened six one-stop-shop stores ahead of the start of the summer season, including at Heathrow, Liverpool, Belfast International and East Midlands airports, with the aim of expanding its offering and increasing the average value of purchases in high-traffic locations.
In North America, fourth-quarter revenue increased 5%, even at constant currency, but comparable sales decreased 3%, impacted by lower passenger volumes and weaker consumer demand.
The North American airport channel still achieved overall growth of 13%, driven by investments in the Travel Essentials format, while comparable sales fell 2%. The situation was more challenging in resorts, where revenue fell 26% due to declining visitor numbers and the rationalization of the fashion store network.
In the rest of the world, quarterly revenues decreased by 4%, or 6% at constant exchange rates, due to the ongoing closures, while comparable sales maintained a positive trend, with growth of 3%.
The group has completed its exit from Norway and plans to exit Denmark and Sweden in early 2027, as well as the Netherlands upon the expiration of its lease. It is continuing its program of closing unprofitable businesses and converting smaller markets to a franchising model. The sale of Cult Pens was also completed in early September.
On the financial front, following the capital increase completed on June 10 with net proceeds of £103 million, net debt as of August 31 is estimated at around £325 million, with leverage around 2x, in line with forecasts.
Finally, WH Smith reported progress in managing costs, liquidity, and working capital, along with portfolio rationalization and targeted investments in higher-yielding Travel Essentials. Preliminary full-year results will be published on November 12, 2026.
