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Investors in WH Smith would like more information about his strategy after agreed to sell its British High Street stores and the potential impact of US rates when the retail firm updates the market next week.
It was a busy start of 2025 for the historic trader, as it pointed out to focus exclusively on its growing travel shop companies.
On Wednesday, April 16, WH Smith will update shareholders over the past six months about his trading in his first major update since selling its high -street rescue stores in the UK.
Last month, WH Smith announced that the owner of the Hobbycraft owner, Modela Capital, will buy the division for around £ 76m.
The new owner will re -name the High Street chain – which has 480 stores and 5000 staff members – as TGJONES.
CEO Carl Cowling said the sales agreement was linked to his ‘strategic ambition to become the leading global travel trader’.
In recent years, the travel department of the firm – which also includes stores in hospitals – has grown to make out most of its sales and profits and extend to more than 1,200 stores in 32 countries.
Shareholders will be eager for more guidance on what the sales agreement and the increased focus on travel means for the long -term prospects.
Despite the significant agreement, shares in the company dropped to their lowest level earlier this month.
The company is one of the retailers with exposure to the US market who has seen their value be beaten by President Donald Trump’s US tariff plans.
Investec analysts emphasize that approximately 28% of its sales and 30% of its profits for the current financial year are expected to come from the US, which also includes Marshall Retail Group (MRG) and in motion stores.
Investec suggests that the company may have an impact on a “macroeconomic slowdown rather than a tariff impact”, as poorer growth can affect traveler numbers.
Nevertheless, the broker said it expects any impact on the cost of its own label products to “be given in higher prices”.
So shareholders would like the business to shed light on how rates are expected to affect the price and profitability in the next year.
WHW Smith is also likely to reveal how it can reduce the cost of the costs caused by the change in policy.
The company is expected to report a profit of £ 43m over the past six months, which would be slightly lower compared to the same period last year, to the poorer profitability of the High Street arm.
Whe Smith is expected to improve in the second half of the year, amid a seasonal boost of an increase in travelers using its airport stores.
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