Following today’s release of WH Smith’s results for the 26 weeks ending 28 February 2026; Charlotte Chilcott, Retail Analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “WH Smith’s task of rebuilding profitability will prove challenging as the conflict in the Middle East continues to disrupt global travel. While WH Smith has delivered revenue growth in the first half, profitability has moved sharply in the wrong direction. The group reported revenue growth of 5% for the 26 weeks ending 28 February 2026, marking a solid performance at a time of limited growth in non-food spending. However, during this period, the group slipped to a pre-tax loss of £25m, a significant deterioration from a £4m loss a year earlier, as upgrades to UK airport sites and inflationary cost pressures eroded margins.
“Management has lowered full-year headline profit before tax guidance by £10m and suspended the dividend, citing disruption to global air travel linked to the Middle East war. With the business now focused solely on travel, WH Smith is particularly exposed to weakening passenger numbers as geopolitical tensions and economic uncertainty weigh on demand. The market reaction reflects these compounding risks, with share price falling over 10% in early-morning trading. WH Smith will need to tighten cost control and restore sustainable profitability to restore investor confidence.
“The UK market delivered modest growth in the first half, with both total and like-for-like revenue rising 2%. Growth was constrained by temporary store closures across Heathrow terminals as the Group upgraded its UK estate. Although momentum should improve now that refurbished flagship sites have reopened, this will be limited by the impact of jet-fuel shortages, flight cancellations and airlines passing on higher costs to travellers, resulting in pressure on footfall and margins in key airport locations into the second half of the year. Going forward, the retailer’s decision to focus on expanding its health & beauty and food-to-go offer is sensible as these categories benefit from inelastic demand, supporting steadier sales and a more dependable revenue base when consumers cut back on discretionary spending.
“North America delivered strong headline growth, with total revenue increasing 10%, although like-for-like growth of just 1% suggests that much of the uplift was driven by new store openings rather than underlying trading momentum. Airport expansions drove growth in the region, with North America Air revenue up 15% but performance remains uneven. WH Smith-owned technology retailer InMotion weighed on results, with like-for-like revenue down 4%. Separately, revenue in the North American Resorts business fell 6%. While management has begun reshaping the portfolio, closing net three InMotion stores and eight Resort stores in the first half, WH Smith will need to rationalise further to address ongoing underperformance in these areas.”
