WH Smith (LSE:SMWH) reported a 5% increase in group revenue and like-for-like sales growth of 2% during the 14 weeks to 6 June 2026, but warned that trading conditions have become more challenging, particularly across its North American operations and airport-based retail locations.
The company said weaker consumer spending, lower passenger volumes and disruption associated with the conflict in the Middle East have weighed on performance. As a result, management now expects full-year headline profit before tax to be in the range of £75 million to £90 million and anticipates recording a non-cash impairment charge of up to £150 million.
In response to the tougher trading environment, WH Smith is accelerating restructuring measures across its travel portfolio. The group plans to close underperforming stores in Las Vegas and Norway and is conducting a review of its InMotion business as part of a broader effort to improve operational efficiency and profitability.
To strengthen its financial position and support the ongoing transformation programme, the company has announced plans for a non-pre-emptive placing of new ordinary shares. Management said the additional capital will help absorb restructuring costs, reinforce the balance sheet and provide flexibility to pursue future growth opportunities where appropriate.
Looking ahead, WH Smith is assuming no significant recovery in consumer confidence in the near term and expects inflationary pressures and margin challenges to persist. The company remains focused on cost management, disciplined capital allocation and maintaining its long-term position within key travel retail markets despite the uncertain backdrop.
The outlook is currently influenced by weaker profitability, margin pressure and higher leverage levels, although cash generation remains relatively resilient. Technical indicators also remain negative, reflecting a bearish share price trend. While the stock offers a moderate dividend yield, valuation remains difficult to assess due to loss-making earnings and a negative price-to-earnings ratio.
More about WH Smith
WH Smith is a UK-based retailer focused primarily on travel locations, including airports, railway stations and hospitals. The group sells travel essentials, books, magazines, food, beverages and convenience products through a broad international network. It also operates a substantial North American travel retail business, including InMotion electronics stores and resort-based outlets, alongside a number of international franchise operations.
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