WH Smith (LON:SMWH) Releases Quarterly Earnings Results

WH Smith (LON:SMWH) posted its earnings results on Friday. The company reported GBX (14.20) earnings per share for the quarter, Digital Look Earnings reports. WH Smith had a net margin of 3.44% and a return on equity of 17.78%.

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

• Completed a strategic reset to a pure‑play global travel retailer by selling the High Street and Funky Pigeon businesses, sharpening focus on travel essentials and return on capital.
• North America underperformed: headline trading profit was only £15m after a £23m net supplier income reduction and £12m of inventory‑related costs, prompting store exits (InMotion, resort fashion/specialty) and a multi‑year remediation to restore margins.
• Group results were mixed — revenue up 5% to £1.6bn and like‑for‑like growth across divisions, but headline trading profit fell 6% to £159m and headline PBT was £108m; the board proposed a final dividend of £0.06 (full‑year £0.173).
• Refinancing completed (USPP notes and bank term debt plus a £200m backstop); headline net debt was £390m (guidance ~£400m for FY26) and management targets leverage below 2x while expecting interest costs to rise to ~£33–35m in FY26.
• UK and international growth plans remain active: largest ever UK store development program (one‑stop shop/health & beauty expansion), capex guidance ~£90m for FY26 with major projects at Heathrow/JFK/Orlando and a shift to franchise models in select Rest of World markets to improve returns.

WH Smith Trading Down 7.0%

LON SMWH opened at GBX 637 on Friday. The business’s fifty day moving average is GBX 662.02 and its 200-day moving average is GBX 828.19. The company has a debt-to-equity ratio of 253.13, a current ratio of 0.85 and a quick ratio of 0.42. The stock has a market capitalization of £793.45 million, a price-to-earnings ratio of 141.56, a PEG ratio of 2.65 and a beta of 1.67. WH Smith has a one year low of GBX 585.50 and a one year high of GBX 1,315.

Wall Street Analyst Weigh In

SMWH has been the topic of a number of analyst reports. Berenberg Bank downgraded shares of WH Smith to a “hold” rating and cut their price objective for the stock from GBX 1,600 to GBX 700 in a report on Thursday, September 11th. JPMorgan Chase & Co. boosted their price target on shares of WH Smith from GBX 750 to GBX 800 and gave the stock an “overweight” rating in a report on Tuesday, December 2nd. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of GBX 866.20.

Key Stores Impacting WH Smith

Here are the key news stories impacting WH Smith this week:

• Positive Sentiment: Group revenue rose despite weaker trading, showing some underlying top‑line resilience. WH Smith profit slumps on weak trading despite revenue growth
• Positive Sentiment: Company says it has completed the shift to a pure‑play travel retail model, which could simplify operations and focus management attention. WH Smith completes shift to pure-play travel retail
• Positive Sentiment: Some commentators still flag WH Smith as a potential turnaround candidate for 2026 if operational issues are resolved. FTSE 250 potential turnaround piece
• Neutral Sentiment: Quarterly results released: EPS GBX (14.20) for the quarter; net margin ~3.4% and ROE ~17.8% — investors will parse the full call/slides for management detail. MarketBeat earnings release & call
• Negative Sentiment: Profit miss and a financial restatement have dented investor confidence and weighed on the share price. Profit miss and restatement analysis
• Negative Sentiment: Company disclosed a North American accounting error that reduced reported profits and prompted a review of some US businesses — a key driver of the sell‑off. North American accounting error report
• Negative Sentiment: The UK financial regulator (FCA) has opened an investigation into WH Smith, adding regulatory risk and uncertainty. FCA investigation coverage
• Negative Sentiment: Management cut FY26 profit guidance which triggered an immediate share price reaction and increased trading volume. FY26 profit cut coverage
• Negative Sentiment: Company is pursuing clawbacks of bonuses from ex-directors, highlighting governance frictions that may pressure investor sentiment. WH Smith attempts to claw back ex-director bonuses

About WH Smith

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.