WH Smith (LSE:SMWH) reported a 5% increase in group revenue to £1.55 billion for the year ended 31 August 2025, marking the completion of its transition to a pure-play travel retail business. However, headline pre-tax profit from continuing operations eased to £108 million, with trading profits coming under pressure, particularly in North America.
The group outlined a more targeted regional strategy. In the UK, WH Smith is focused on strengthening its leadership in travel essentials while expanding higher-growth categories such as health and beauty and food-to-go. In North America, the company is exiting loss-making fashion and specialist stores within its Resorts division and is reviewing the future of the InMotion business. Elsewhere, international growth is being concentrated on core markets, with a greater emphasis on capital-light, franchise-led expansion.
Current trading shows like-for-like revenue growth of around 3%. Looking ahead, the company is guiding to headline profit before tax of £100 million to £115 million in FY26, alongside total revenue growth of 4–6%. Alongside operational changes, WH Smith is implementing a remediation programme following a Deloitte review and has disclosed that the Financial Conduct Authority has opened an investigation, placing governance and internal controls under closer scrutiny.
Despite these challenges, the board has proposed a final dividend of 6.0 pence, maintaining its reset dividend policy of 2.5 times cover on continuing earnings. Management said this reflects confidence in the longer-term sustainability of the streamlined, travel-focused model and its ability to generate shareholder returns.
From a market perspective, WH Smith’s solid revenue base is offset by softer profit trends, high leverage and bearish technical indicators. Valuation remains elevated, and the absence of recent earnings call detail limits additional near-term insight, resulting in a more cautious overall assessment.
More about WH Smith
WH Smith is a global travel retailer specialising in travel essentials, health and beauty and food-to-go. The group operates stores in high-footfall locations such as airports, railway stations and hospitals across the UK, North America and international markets. Following the disposal of its UK High Street and funkypigeon.com businesses, WH Smith is now fully focused on travel retail, where it holds leading category positions and is pursuing capital-efficient growth through core formats and selected overseas franchise partnerships.
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