REG - WH Smith PLC - Trading Update

WH SmithAnnouncement

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RNS Number : 6539H  WH Smith PLC  10 June 2026

THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION

 

WH Smith PLC

10 June 2026

Trading Update

 

Revised outlook ahead of peak summer trading against a backdrop of ongoing
uncertainty. Good progress on restructuring plans.

Placing to strengthen capital position to enable ongoing transformation

 

WHSmith today announces its trading update for the 14 week period to 6 June
2026. The Group has announced separately today a proposed placing of new
ordinary shares in the company.

Total revenue in the 14 weeks to 6 June 2026 increased by 5% on a constant
currency basis versus the prior year and LFL revenue was up 2% versus the
prior year.

Group revenue growth in the period compared to 2025 has been:

                                     Revenue 14 Weeks

                                     to 6 June 2026
                                     Total    Total constant currency versus 2025  LFL      LFL revenue in 7 weeks to

                                     versus                                        versus   6 June 2026

                                     2025                                          2025
 Air                                  4%       4%                                  (1)%     0%
 Hospitals                           10%      10%                                  7%       11%
 Rail                                3%        3%                                  2%       4%
 Total UK                            5%        5%                                  2%       4%
 Air                                 15%      17%                                  1%       (2)%
 Resorts                             (18)%    (16)%                                (9)%     (11)%
 Total North America                 8%       10%                                  (1)%     (4)%
 Rest of the World (ROW) and Other*  2%       (2)%                                 3%       2%

 Group                               5%       5%                                   2%       1%

*Includes Cultpens.com

UK

Total revenue for the 14 week period increased by 5% year on year, with LFL
revenue up 2%. Air passenger numbers continue to be impacted by disruption to
Middle East flight schedules and weaker consumer confidence has impacted spend
per passenger, resulting in a lower level of growth during the period.

LFL revenue in Air was down 1%, while the Hospital channel grew by 7% and Rail
increased by 2% with a slightly improved trend in the last 7 weeks, supported
by softer comparatives in Hospitals last year.

The division's one-stop-shop openings across Belfast, East Midlands, Heathrow
and Liverpool airports are delivering good year on year growth with positive
landlord and customer feedback.

North America

Total revenue in North America for the 14 week period increased by 10%
compared to the prior year on a constant currency basis. LFL revenue in the
same period was down 1%. Over the last 7 weeks, LFL revenue declined by 4%.

In Air, in the last 7 weeks, LFL revenue decreased by 2%, reflecting reduced
passenger numbers following recent air fare inflation and a reduction in
airline capacity linked to the Middle East conflict, which drove lower store
footfall and in addition softer consumer demand led to lower spend per
passenger growth.

o  Travel Essentials LFL revenue decreased by 1% over the last 7 weeks

o  InMotion LFL revenue decreased by 5% over the last 7 weeks with a
significant decline in store footfall over the period. The InMotion store
portfolio review is ongoing.

As a result of a softening in consumer demand, further promotional activity
has been and will be required, whilst brand marketing investment is reducing
and inflation headwinds continue.  Together, these have resulted in gross
margin pressure.

In Resorts, LFL revenue decreased by 11% in the last 7 weeks, driven by the
continued reduction in Las Vegas visitor numbers.

Further action has been taken in the Resorts segment to address
underperformance, with 14 uneconomic fashion stores now either closed or with
agreed closure dates. The remaining 12 fashion stores are likely to be exited
in the balance of the year. The Group is also considering strategic options
for its Welcome to Las Vegas business.

Rest of the World and Other

Total revenue for the 14 week period decreased by 2% on last year on a
constant currency basis and increased by 3% on a LFL basis, reflecting the
softening in passenger growth over recent weeks.

In the 14 week period, 5 uneconomic stores were closed in Norway. Further
landlord discussions are advancing to either exit or transition stores to a
franchise model.

Outlook and planning assumptions

Given the ongoing uncertainty from the Middle East conflict and pressures on
gross margins, including the recent deterioration in the North America
division, the Group expects to deliver FY26 Headline Group profit before tax
and non-underlying items of £75m - £90m.

Management's expectations for the full financial year reflect the observed and
anticipated decline in passenger numbers and weakening consumer demand across
all divisions and a reduction in brand marketing, increased promotional
activity and inflation headwinds across the Group. The Group assumes no
near-term improvement in consumer confidence and that jet fuel supplies can be
maintained. Consistent with prior years, the Group's trading profit is heavily
weighted to the final quarter of the financial year.

North America planning assumptions for FY26 revenue growth of 4% - 6% and
Headline trading profit margin of c.5%. All other divisional trading
assumptions are unchanged.

As a result of the North America InMotion review, store exit programme and ROW
restructuring, the Group anticipates a significant non-underlying non-cash
impairment charge of up to £150m for the full year relating to goodwill and
store impairments.

Strengthening of the Company's financial position through the proposed placing
of ordinary shares

The Group continues to focus on cost and cash discipline and is today
announcing its intention to conduct a non-pre-emptive placing of new ordinary
shares in the Group (the "Capital Raise").

Full details of the Capital Raise are contained in a separate announcement
released by the company.

Looking ahead, the strengthened balance sheet and clear focus on capital
discipline is intended to position the Group to capitalise on attractive
growth opportunities across its key markets and deliver improved, sustainable
returns over the medium-term.

 

Enquiries:

 WH Smith PLC
 Mark Boyle      Investor Relations  +44 787 989 7687
 Nicola Hillman  Media Relations     +44 204 642 9892

 Brunswick
 Tim Danaher                         0207 404 5959

 

 

Important notices

This Announcement contains inside information and is issued on behalf of the
Group by Ian Houghton, Company Secretary.

This Announcement is not intended to, and does not constitute, or form part
of, any offer to sell or issue or any solicitation of an offer to purchase,
subscribe for, or otherwise acquire, any securities in any jurisdiction.

 

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