WHSmith will operate travel essentials stores across Heathrow’s Terminals 3 and 4 and will extend its presence in Terminal 5.

WH Smith PLC revenue rose 5% to £1,553 million for the year ended 31 August 2025, according to the Group’s preliminary results announcement.

The full-year (FY) 2025 results come as the Group completes its ‘strategic reset’ into a pure-play travel retailer following the sale of the High Street business and funkypigeon.com.

Total Group revenue was up 5% in the UK; 7%* in North America; and 12% on the Rest of the World and Other (‘ROW’) (*on a constant currency basis).

In the announcement, WH Smith sets out a number of key priorities moving forward, which includes an ‘enhanced focus’ on the North America Travel Essentials business with the Group revealing it is ‘in the process of exiting a number of unprofitable fashion and speciality stores’.

‘We are also undertaking a review of our North America InMotion business and the breadth of the portfolio’, the company stated. ‘Across the business, we have put in place a more rigorous approach to any future store openings with new InMotion stores only being considered as part of a strategically important tender package.’

The Group relays that, where appropriate, it will also consider moving the InMotion proposition into large marketplace stores.

The review of the existing store portfolio is expected to complete in the first half of 2026 and then the company plans to move to ‘reshape the portfolio to improve profitability’.

‘Over time, we expect the number of InMotion stores to decline as we focus on our Travel Essentials business and integrating more tech accessories into these stores, as well as the impact of landlord redevelopment,’ reads the announcement. ‘In the years ahead, we would expect the InMotion estate to contract by around 20-30% with store numbers reducing below 100 in the medium term.’

In the UK, the Group plans to ‘expand and strengthen’ its UK Travel essentials business through the one-stop-shop format. This is in addition to ‘actively scaling’ its health and beauty and food-to-go categories.

During the year, WH Smith opened 17 new stores in the UK, including four at airports and, over the next year, expects to open circa 20 new stores (and to close 15).

Indeed, the Group is set to bring to life its largest-ever store development programme, rolling out its one-stop-shop strategy across six more UK airport terminals, including at London Heathrow, where it will extend its presence with flagship one-stop-shop formats across Terminals 3, 4 and 5.

Furthermore, there will be a focus on strengthening core ROW markets – including Australia, Ireland and Spain – with ‘new growth driven through franchise model’, also with a view to ‘review and exit non-core markets’.

Source: WH Smith PLC – Preliminary Results Announcement for the Year ended 31 August 2025.

Following the findings of the independent Deloitte Review announced on 19 November 2025 – supplier income had been overstated in the North America division, which has resulted in prior year restatements – the Board has put a ‘comprehensive remediation plan’ in place that is ‘progressing at pace’, says the company.

The Financial Conduct Authority has begun an investigation into the Company and the Group is ‘committed to cooperating fully with any engagement in relation to the North America accounting issue from any regulatory body or other authority’.

“It has been a difficult end to the year for the Group,” commented Andrew Harrison, Interim Group Chief Executive. “The Board and I are acutely aware that we have much to do to rebuild confidence in WHSmith and deliver stronger returns as we move forward. We are acting at pace progressing our remediation plan and are committed to ensuring that we strengthen our financial controls and governance as we move forward.

“Following the sale of our UK High Street business and Funky Pigeon during the year, we are now a pure-play global travel retailer. Travel retail is a high growth market, and we have attractive market positions in the UK, North America and our international markets from which we are well-positioned to grow.

“I would like to thank our colleagues who have shown the utmost commitment and professionalism during an uncertain and busy period for the business.

“As Interim CEO, my focus is to provide stability and to lead the Group with transparency and discipline. WHSmith is a business with an exciting future and I look forward to executing against our clear priorities to ensure we capitalise on the attractive opportunities ahead.”

Carl Cowling stepped down as Group CEO and as a Board Director on 19 November and the Board is currently searching for a Group CEO as well as two Non-Executive Directors to ‘strengthen the Board with one area of focus being North America retail experience’.

Trading outlook 

Also within the preliminary results announcement for the year ended 31 August 2025, WH Smith gave an insight into the first 15 weeks of the current financial year.

In the first 15 weeks of FY26, the Group delivered LFL growth of 3%, with the UK softening slightly to 2%, ‘largely reflecting a softening in rail’, according to the company.

North America revenue trends were ‘in line with the last 13 weeks of FY25’ with LFL growth of 1%, and ROW has continued to perform ‘well’, with growth of 6%.

For the full year ending 31 August 2026, the Group expects total revenue growth of c.4-6%. In the UK, total revenue growth is expected to be c.3–5%, in North America c.6–8%, and in the Rest of the World division c.4–6%.

Headline trading profit margin in the UK is expected to be c.14–15%, North America c.7-8%, and c.5% in the Rest of the World.

This, says WH Smith, ‘reflects the different dynamics in each market: a year of investment in the UK, a focus on rebuilding profitability in North America and strengthening our foundations internationally’.

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