Following today’s release of WH Smith’s figures for the 26 weeks ending 28 February 2025; Charlotte Chilcott, retail analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “While WH Smith’s results show a steady first half, the accounting error in its North American division has continued to weigh on market sentiment. WH Smith has reported group revenue growth of 5% and like-for-like revenue growth of 2% for the 26 weeks ending 28 February 2026, marking a solid performance at a time of little growth in non-food spending. Although the group’s share price hasn’t changed significantly following these results, it is down 45% over the past year, signalling a sharp deterioration in investor confidence. In response, WHSmith has appointed Leo Quinn, the former chief of Balfour Beatty, as executive chair. The hire is intended to reassure the market, with Quinn’s success at Balfour Beatty adding credibility to WH Smith’s senior leadership. While the appointment may help steady sentiment in the near term, a sustained recovery in confidence will depend on clear progress in governance and profitability, not just revenue growth.
“The UK delivered modest growth in the first half, with total revenue rising 2% and like-for-like revenue also up 2%, indicating that performance was largely driven by improved trading from existing stores rather than expansion. Growth was supported by strong momentum in the Hospital channel, with revenue increasing 7%. Performance in Air was more subdued. Total revenue was up 1% and like-for-like sales rose 2%, with growth held back by temporary store closures across Heathrow terminals while WH Smith invests in upgrading its UK estate. Although growth here should improve when refurbished flagship stores reopen in April, rising geopolitical uncertainty in the Middle East will weigh on passenger traffic in key markets and could impact future performance. Rail was the weakest area of the UK portfolio, with total revenue up just 1% and like-for-like revenue falling 2%, reflecting ongoing consumer cost pressures and softer spending in the channel. While the UK remains a stable part of the group, the first half suggests a more muted growth environment compared with previous periods.
“North America delivered strong headline growth in the first half, 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, with revenue up 15%, but performance remains uneven. InMotion weighed on results, with total revenue down 1% and like-for-like revenue down 4%, while the resorts business fell 6% on both total and like-for-like revenue. Management has begun reshaping the portfolio, reviewing InMotion and closing three fashion stores, but further rationalisation is needed in order to address ongoing underperformance in these areas.”
