WH Smith: High street profit slumps ahead of Modella sale
WHSmith’s high street division has reported a significant drop in trading profit, falling by over 30 per cent as it prepares for its sale to private equity firm Modella Capitlal.
The retailer’s high street business delivered a profit of £15m for the six months to Febuary 28, 2025, down from £22m in the same period last year.
Sales also saw a seven per cent decline, totaling £239m.
The decline in high street performance comes ahead of WHSmith’s announced sale of its 482 stores to Modella for £76m, a deal which was finalised in late March.
The sale marks a strategic shift for the company as it moves to focus on its expanding travel retail operations.
Yet, WHSmith’s travel division continued its strong performance, with trading profit increasing by 12 per cent.
This was driven by a six per cent rise in sales, which came up to £712m.
Uncertain future for TG Jones
The retail giant also highlighted its significant expansion plans, with over 90 stores in the pipeline, and expectations to open 60 locations this financial year.
WHSmith’s chief executive, Carl Cowling, expressed confidence in the group’s future, noting the robust performance across its travel business and a positive outlook for the rest of the financial year.
“We are well positioned for the peak summer trading period and continue to benefit from growth opportunities in global travel retail”, he said.
The British high street icon is set to have its 480 stores rebranded as TG Jones, after an attempted rebrand to ‘WHS’ in 2023.
Looking ahead, WHSmith remains on track to meet full-year market expectations, although it acknowledged the potential impact of geopolitical and economic uncertainty on its business.
As part of its transformation into a global travel retailer, WHSmith is placing significant emphasis on growing its travel businesses, particularly in North America, which is seen as a key growth market.
The firm’s expansion strategy includes new store formats and significant investment in its retail offer across airports, hospitals, and rail stations, areas which it has already seen strong revenue growth.