WH Smith (LON:SMWH) Posts Earnings Results

WH Smith (LON:SMWH) released its earnings results on Thursday. The company reported GBX (68.70) EPS for the quarter, Digital Look Earnings reports. The business had revenue of GBX 162.50 billion during the quarter. WH Smith had a negative return on equity of 90.46% and a negative net margin of 9.48%.

Here are the key takeaways from WH Smith’s conference call:

• Revenue rose 5% to £1.6 billion, but headline profit before tax fell to £76 million from £108 million, reflecting lower U.K. trading profit; diluted earnings per share also declined.
• Higher rents on renewed U.K. airport contracts reduced the 2026 margin by about 230 basis points, with a further 30–50 basis-point impact expected in 2027. The company expects U.K. trading profit to be broadly flat next year as cost savings offset some of the pressure.
• In the first 10 weeks of the new financial year, group like-for-like revenue was flat and total revenue grew 1% at constant currency; management said it remains cautious and expects 2027 headline PBT of £75 million–£85 million.
• Free cash flow was £52 million and year-end net debt was £325 million, with leverage at 2x after the June equity raise. However, 2026 included £164 million of non-underlying charges, and the company expects about £40 million of related cash outflows in 2027.
• Management plans to reshape North America by closing around 100 stores and opening around 100, with a greater focus on Travel Essentials; it targets medium-term revenue growth of 20% and margin improvement from 3% to 8%. These are management targets and depend on successful execution of the transformation.

WH Smith Stock Down 7.1%

Shares of SMWH stock traded down GBX 30.40 on Thursday, reaching GBX 396.80. 9,974,678 shares of the company’s stock traded hands, compared to its average volume of 3,511,507. WH Smith has a 12-month low of GBX 345.60 and a 12-month high of GBX 710. The company has a market capitalization of £597.18 million, a P/E ratio of -4.10, a price-to-earnings-growth ratio of 2.65 and a beta of 0.93. The company has a debt-to-equity ratio of 846.40, a quick ratio of 0.42 and a current ratio of 0.33. The business’s 50 day moving average price is GBX 393.96 and its two-hundred day moving average price is GBX 488.03.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Berenberg Bank boosted their price objective on WH Smith from GBX 420 to GBX 440 and gave the stock a “hold” rating in a report on Thursday, September 17th. JPMorgan Chase & Co. decreased their target price on shares of WH Smith from GBX 575 to GBX 550 and set an “overweight” rating for the company in a report on Thursday, September 17th. Finally, Canaccord Genuity Group dropped their target price on shares of WH Smith from GBX 555 to GBX 535 and set a “buy” rating on the stock in a research report on Wednesday, September 16th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of GBX 566.43.

WH Smith Company Profile

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books.