Overview
- WH Smith confirmed it overstated around £30 million of expected headline trading profit in North America due to supplier income being recognized too early, with the issue stated to be confined to that division.
- The company cut North America headline trading profit guidance to about £25 million from roughly £55 million and now expects group headline profit before tax to be around £110 million.
- The stock sank as much as roughly 40% in London trading following the disclosure, extending a steep year‑to‑date decline.
- The board has appointed Deloitte to conduct an independent review, with a fuller update expected alongside preliminary results scheduled for November 12.
- The shift to a travel‑only model after selling the UK high‑street chain has heightened reliance on North America, and analysts and short‑interest data highlight elevated scrutiny and uncertainty over forecasts until the review concludes.