UK retailer WH Smith's FY pretax profit expected to miss estimates due to higher promotions

WH Smith

16/09/2026 07:17

Overview
UK travel retailer's Q4 group revenue grew 4% yr/yr
Full-year headline group pretax profit expected to miss analyst expectations
Profit margins impacted by increased promotions, reduced marketing, and inflation headwinds

Outlook
WH Smith expects full-year headline group profit before tax of about £75 mln
Company anticipates year-end net debt of around £325 mln and leverage of 2.0x
Company cites inflation headwinds and increased promotional activity as factors impacting margins

Result Drivers
PROMOTIONAL ACTIVITY - Increased promotional activity contributed to lower trading profit margins
INFLATION HEADWINDS - Inflation pressures negatively affected profit margins
PORTFOLIO RATIONALISATION - Store closures and market exits in Rest of the World division aimed to improve profitability and cash generation

Company press release: ID:nRSP8978Ua

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY  Adjusted Pretax Profit (expected)
Miss
GBP 75 mln
GBP 77.5 mln (11 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for WH Smith PLC is GBp455.00, about 25.4% above its September 15 closing price of GBp362.80
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Sept 15 - UK's Wickes Group H1 revenue rises 2.1%, profit up 1.1%
Sept 15 - UK's Trustpilot shares slump as unchanged outlook disappoints investors
Sept 15 - UK food price inflation could hit nearly 7% in 2027, says industry researcher

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)