Reported pre-tax profit of 45 million pounds ($59.72 million) for the first-half of the fiscal year

International news via Reuters:

Retailer WH Smith expects to meet full year market expectations despite reporting a slight dip in first-half profit on Wednesday as weakness in its recently sold British high street stores offset growth at travel outlets.

The company, with about 1,200 stores in airports and train stations across 32 countries, is banking on a strong summer season to drive foot traffic in transit areas. It said the second half of its financial year had started well.

WH Smith reported pre-tax profit of 45 million pounds ($59.72 million) for the first-half of the fiscal year, compared with 46 million pounds a year ago.

“We are mindful of the increased level of geopolitical and economic uncertainty, however given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail,” it said in a statement.

The shares slipped 1.6% at 935.5 pence by 0821 GMT while the FTSE midcap index was down 0.45%.

Analysts on average are expecting the company to post full year pre-tax profit of 182.6 million pounds ($242.7 million), in forecasts compiled by LSEG.

Revenue from the travel business rose 6% to 712 million pounds in the first half for the period ending 28 February compared to a 13% rise to 670 million pounds in the same period last year. Sales at the retailer’s recently sold UK high street business fell 7% to 239 million pounds in a subdued consumer market.

“We believe WH Smith’s forensic approach to retailing should mean it is well-placed to expand successfully in the global travel essential retail segment,” said Richard Chamberlain, analyst at RBC Capital Markets.  

($1 = 0.7525 pounds)

Reporting by Anandita Mehrotra in Bengaluru; Editing by Mrigank Dhaniwala and Elaine Hardcastle

Price pressures will likely rise in the months ahead as U.S. tariffs filters through to consumers

International news via Reuters:

Sterling edged up against the dollar on Wednesday, as heightened uncertainty over the outlook for U.S. trade policy kept the U.S. currency under pressure across the board, while a batch of softer UK inflation data dented the pound against the euro.

British inflation slowed to an annual rate of 2.6% in March from 2.8% in February below analysts expectations of 2.7%, according to the office for National Statistics. This was below forecasts for a reading of 2.7% and the slowest pace in three months.

A measure of services inflation, something the Bank of England is monitoring closely, also eased to an annual rate of 4.7% in March, from February’s 5% reading, below forecasts for 4.8%.

The pound was last up 0.3% on the day at $1.3267, close it its highest in six months against the dollar.

It was softer on the euro, which was up 0.5% on the pound at 85.66 pence.

Price pressures will likely rise in the months ahead, as the impact from U.S. President Donald Trump’s tariffs filters through to consumers.

Economists at Deutsche Bank believe this effect will not be enough to push the rate of inflation above the BoE’s current forecast for a peak at 3.7% in the third quarter this year – and therefore, should give the Monetary Policy Committee (MPC) room to cut interest rates as the economy slows.

“Inflation will take a big step up in April, pushing above 3.25% year on year, as energy and water bills lead inflation higher. The good news? We still see inflation running below the MPC’s forecast through Q2-25 – giving the MPC enough runway to cut rates through the year,” Deutsche Bank chief UK economist Sanjay Raya said.

Markets show traders expect the BoE to deliver three quarter-point cuts this year, leaving rates at 3.60% by December, their lowest since January 2023.

Trump’s tariff policies have sown confusion among investors this month and sparked concern that the hit to global growth will be enough to trigger a recession. The dollar has been a major casualty of the demand from investors for non-U.S. assets, falling by more than 4% against a basket of currencies since April 2, when Trump initially unveiled his proposed suite of tariffs.

Reporting by Alun John and Amanda Cooper; Editing by Toby Chopra