WH Smith (LON:SMWH) Announces Earnings Results

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

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 6.9%

Shares of LON SMWH opened at GBX 371 on Friday. WH Smith has a 12-month low of GBX 345.60 and a 12-month high of GBX 710. The company has a market cap of £558.36 million, a P/E ratio of -3.84, a P/E/G ratio of 2.65 and a beta of 0.93. The company has a current ratio of 0.33, a quick ratio of 0.42 and a debt-to-equity ratio of 846.40. The stock has a fifty day moving average price of GBX 394.11 and a 200 day moving average price of GBX 486.62.

Analyst Ratings Changes

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