WH Smith (LON:SMWH) Issues 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 return on equity of 17.78% and a net margin of 3.44%.

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 Stock Down 4.5%

Shares of WH Smith stock opened at GBX 653.94 on Friday. WH Smith has a one year low of GBX 585.50 and a one year high of GBX 1,315. 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’s 50-day moving average is GBX 662.04 and its 200 day moving average is GBX 830.92. The firm has a market cap of £814.55 million, a price-to-earnings ratio of 145.32, a PEG ratio of 2.65 and a beta of 1.67.

Analyst Ratings Changes

A number of research firms recently weighed in on SMWH. Peel Hunt downgraded WH Smith to a “hold” rating and decreased their price objective for the company from GBX 1,400 to GBX 755 in a report on Thursday, August 21st. Deutsche Bank Aktiengesellschaft reduced their price target on WH Smith from GBX 1,030 to GBX 726 and set a “hold” rating on the stock in a research report on Thursday, August 21st. JPMorgan Chase & Co. raised their price objective on WH Smith from GBX 750 to GBX 800 and gave the stock an “overweight” rating in a research report on Tuesday, December 2nd. Finally, Berenberg Bank cut WH Smith to a “hold” rating and reduced their target price for the company from GBX 1,600 to GBX 700 in a report on Thursday, September 11th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of GBX 866.20.

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.