Following today’s release of WH Smith’s figures for the 14 weeks ending 6 June 2025; Charlotte Chilcott, Retail Analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “WH Smith continues to grapple with the repercussions of the Middle East conflict, as ongoing uncertainty disrupts global travel into the peak summer trading period. While total group revenue grew by 5% in the 14 weeks to 6 June 2026, demonstrating resilience amid a challenging backdrop, like-for-like revenue in the seven weeks to 6 June 2026 revealed weakening demand in the Air channel for both the UK and North America divisions. Its share price has plummeted by almost 20% in early morning trading, reflecting the lowering of full-year headline profit before tax guidance by a further £15m, following a £10m reduction in the group’s H1 FY2025/26 results. With the group’s trading profit heavily weighted to the final quarter of the financial year, this period will be crucial for financial recovery.
“Despite the overall pressure on profits, the UK market delivered solid growth in Q3, with total revenue increasing by 5% and like-for-like revenue up 2%. The Hospital channel was a standout performer with a 10% growth, though this was aided by softer comparatives from the previous year. The Air channel showed moderate growth, with reported revenue rising by 4%, while like-for-like revenue fell by 1%. The reopening of upgraded stores at London Heathrow Airport, along with new one-stop-shop locations at Belfast, East Midlands, Heathrow, and Liverpool airports, is anticipated to drive revenue growth into Q4. However, as the UK represents the largest geographic division by sales, turning around the £25m pre-tax loss from H1 will rely on significantly enhanced operational efficiency and cost management in this region.
“Total revenue in North America for the period increased by 10% compared to the prior year. However, with like-for-like revenue down 1%, growth continues to be driven by new store openings rather than underlying trading momentum. The Air channel experienced a 17% increase in total constant currency revenue. However, amid reduced passenger numbers and decreased airline capacity resulting from the Middle East conflict, like-for-like growth for the period was only 1%. Additionally, there has been a concerning 2% decline in the last seven weeks. This performance is particularly troubling given that air travel is the primary revenue driver for this region. The Resorts division continues to drag on North American revenue, with total constant-currency revenue down 16%. To improve overall performance in North America, significant rationalisation and closure of the unprofitable Resorts division could be necessary.”
