WH Smith is trading at £10.12. The share price is down 13% since the company reported its first-half figures in April, when sales declined by 4% to £686 million but profits rose by 3% to £64 million. The retailer attributed the rise in profits to cost-cutting to the tune of £9 million, and more belt tightening is planned.
The retailer has over 500 stores located at service stations, train stations and airports. In a trading update in June, the company stated that sales at airport branches and international stores were offsetting the decline in revenue from high-street shops. However, the retailer is still confident of its ‘outcome for the full year’. Equity analysts are bullish on WH Smith. Out of the 16 recommendations, 11 are buys and five are holds.
The share price has come under pressure recently, but good results could put the stock on track to £10.93. However, if estimates are missed the share price may drop to £9.09.