WHSmith cuts profit outlook after £30m overstatement in North America

In preparation for the WHSmith Plc (LON:SMWH) year end results for the financial year ending 31 August 2025, a current financial review has identified an overstatement of around £30m of expected Headline trading profit¹ in North America. This overstatement is largely due to the accelerated recognition of supplier income² in the North America division.

WHSmith now expects Headline trading profit¹ from the North America division for the financial year ending 31 August 2025 to be approximately £25m, down from previous market expectations of approximately £55m.

As a result, the Group expects full year Headline profit before tax and non-underlying items¹ to be in the region of £110m.

The Board has instructed Deloitte to undertake an independent and comprehensive review.

The Group will provide a further update at its preliminary results announcement.

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Written by: Amilia Stone

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