The travel retailer's first half was exactly what it needed to be. The question now is whether geopolitics will complicate the second.
WH Smith PLC (LSE:SMWH) delivered a solid first half to February 2026, with group revenue up 5% on a constant currency basis and like-for-like growth of 2%. The numbers were consistent across both quarters, which in the current environment counts as a meaningful achievement.
The UK business grew LFL revenue 2%, with hospitals performing well and air travel broadly stable despite temporary store closures across Heathrow terminals during refurbishment.
Rail was the weak spot, with LFL down 2% against continuing consumer headwinds. Flagship stores are expected to reopen in April.
North America told two stories. Travel Essentials, the core convenience format, grew LFL revenue 6%, driven by new store openings and stronger spend per passenger.
InMotion, the electronics accessories business, fell 4% on a LFL basis, and Resorts dropped 6%, hurt by a sustained decline in Las Vegas visitor numbers. Three fashion stores have already been closed and the rest of the portfolio is under review.
Rest of World grew 6% LFL, driven by the annualisation of prior-year openings, with WH Smith continuing to exit sub-scale markets as leases expire.
Full-year profit before tax guidance of $100 to $115 million was confirmed, with consensus sitting at $108 million.
Peel Hunt, which rates the stock a 'buy' with an 800p target, notes that on a single-digit price-to-earnings multiple the shares look cheap.
The broker's caveat is straightforward: Middle East uncertainty is a real headwind for passenger volumes, and that risk is not going away soon.
In morning trading, the shares were up 1.7% at 616p.