WH Smith reports lower interim profit, suspends dividend as outlook turns more cautious

WH Smith plc (LON:SMWH) has announced its interim results for the period ended 28 February 2026.

Solid first half trading performance; cautious outlook ahead of peak summer trading period

·    Total Group revenue up 5% to £748m (2025¹: £716m)

o  UK up 2%; North America (NA) up 10%*; Rest of the World and Other (‘ROW’) up 8%*

·    Headline Group profit before tax and non-underlying items² £3m (2025¹: £21m)

o  Headline Group trading profit² of £32m (2025¹: £47m)

·    Headline diluted EPS before non-underlying items² (0.8)p (2025¹: 11.5p)

·    Good progress against the key priorities set out in December across all divisions

·    UK trading performance in H1 impacted, as expected, by disruption following the refurbishment of multiple large airport stores and inflation headwinds

·    Successfully opened global flagship stores at Heathrow Terminals 3, 4 and 5 in March and April

·    Travel Essentials stores in North America delivering a strong performance with total revenue up 22%* in H1; decisive actions taken in the Resorts business; good progress made against remediation plan

·    Continued progress in core ROW markets with actions to address challenging performance and reduce exposure in sub-scale markets 

·    Suspension of the dividend to reduce debt and strengthen the Group’s financial position

·    In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items² of £90m – £105m.

Leo Quinn, WH Smith Executive Chair, commented:

“The immediate focus is to restore confidence and ensure the right foundations are in place to support profitable growth and long‑term value creation.

“Moving forward, the Board and management team will have a relentless focus on driving cash, cost discipline and strengthening the balance sheet. As a first step, the Board has taken the prudent decision to suspend the dividend.

“This is a business with a strong brand and proposition in high‑footfall travel markets and the new flagship stores opened across Heathrow airport are raising the global standard for travel essentials retail.

“None of this is achievable without our people. Making sure our colleagues are empowered is a key priority, as engaged teams execute better, serve customers better and drive higher performance over time.

“While the near-term outlook is uncertain, I am confident that, with the right focus and discipline, the business can deliver superior returns for the benefit of our colleagues, partners and shareholders over the longer-term.”

* On a constant currency basis

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory-related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details)

² Alternative Performance Measure (APM) defined and explained in the Glossary on page 48. All numbers presented are from continuing operations unless otherwise stated

Group financial summary – continuing operations

Revenue performance – continuing operations

Current trading

In the first 7 weeks of trading for H2 2026, Group like for like (‘LFL’) revenue² was up 2%. By division, the UK delivered flat LFL revenue growth, largely reflecting a softening in Air following disruption to flight schedules to the Middle East. In North America, LFL revenue growth was 2% with the core Travel Essentials business continuing to perform well with LFL revenue growth of 6%. Rest of the World delivered LFL revenue growth of 5%.

Outlook and planning assumptions

In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. Much will depend on the peak summer trading period and the Group assumes no immediate improvement in consumer confidence and assumes that jet fuel supplies can be maintained. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items² of £90m – £105m.

³ The Group adopted IFRS 16 ‘Leases’ with effect from 1 September 2019. The Group continues to monitor performance and allocate resources based on pre-IFRS 16 information (applying the principles of IAS 17), and therefore the results for the years ended 31 August 2025 and 31 August 2024 have been presented on both an IFRS 16 and a pre-IFRS 16 basis. Measures described as ‘Headline’ are presented pre-IFRS 16. For the purposes of narrative commentary on the Group’s performance and financial position, both pre-IFRS 16 and IFRS 16 measures are provided. Reconciliations from pre-IFRS 16 measures to IFRS 16 measures are provided in the Glossary on page 48. Group revenue was not affected by the adoption of IFRS 16, and therefore all references to and discussion of revenue are based on statutory measures.

⁴ Constant currency

Planning assumptions for the full year ending 31 August 2026: total Group revenue growth of c.3%-5%. In the UK, total revenue growth of c.1%-3%, in North America c.6%-8%, and in the Rest of the World division, c.2%-4%.

Headline trading profit margin² in the UK of c.13%-14%, North America c.7%, and c.4% in the Rest of the World. This reflects the expected reduction in brand marketing, increased promotional activity and inflation headwinds.

Full year headline net debt² is expected to be around £420m.