WH Smith (SMWH) Trading update summary

Group performance

• Achieved solid fourth quarter revenue during peak summer trading, supporting full year profit expectations of approximately £75m before tax and non-underlying items.

• Lower trading profit margins resulted from increased promotional activity, reduced brand marketing, and inflation, but were offset by central cost reductions and lower interest costs.

• Net debt expected to be around £325m as of 31 August 2026, with leverage at 2.0x following a capital raise in June.

• Transformation agenda advanced through cost and cash management, working capital improvements, portfolio rationalisation, and targeted investment in Travel Essentials.

Regional and channel performance

• UK Q4 total revenue rose 7% with LFL up 4%; Air, Hospital, and Rail channels all delivered growth, supported by new and refurbished stores in high-traffic locations.

• North America Q4 total revenue increased 5% (constant currency), but LFL revenue declined 3% due to lower passenger volumes and softer demand; Air channel revenue up 13% but LFL down 2%.

• Resorts in North America saw Q4 revenue fall 26% year-on-year, reflecting lower visitor numbers and ongoing store rationalisation.

• Rest of the World Q4 total revenue decreased 4% (down 6% constant currency), but LFL revenue rose 3%; ongoing exit from unprofitable markets and transition to franchise model.

Strategic actions and balance sheet

• Exited Norway, agreed to exit Denmark and Sweden in early 2027, and will exit the Netherlands on lease expiry in 2027.

• Completed sale of Cult Pens in September 2026.

• Raised £103m in equity in June 2026 to strengthen the balance sheet and accelerate transformation and growth initiatives.

• Preliminary results for the year ending 31 August 2026 will be announced on 12 November 2026, with an update on key priorities.