WHSmith has reported preliminary results for the year ended 31 August 2025. Interim group CEO Andrew Harrison described it as a “difficult end to the year” as the former high street newsagent and stationery giant completes its transformation into a pure-play travel retailer.
WHSmith saw revenues climb 5% to £1.55bn, with growth across all regions. However, headline pre-tax profit dipped to £108m from £114m a year earlier, despite landing at the top end of expectations. Trading profit also fell to £159m from £170m, as margin pressures and restructuring costs weighed on performance. The dividend was trimmed to 17.3p per share, reflecting a reset to earnings from the continuing travel-focused business.
The company has set out a more focused strategy following the sale of its High Street business and card business funkypigeon.com earlier this year. “Travel retail is a high-growth market, and we have attractive market positions in the UK, North America and our international markets from which we are well-positioned to grow,” Harrison said. In the UK, the focus is on retaining category leadership in Travel Essentials through its one-stop shop format. In North America, a review has concluded with plans to close InMotion and “unprofitable” fashion stores, sharpen focus on travel essentials, and avoid “unnecessary expansion.” Overseas, closures are also expected as the group prioritises core markets and franchise-led growth.
FCA investigation
WHSmith’s latest results come in the wake of a profit warning after the retailer was found to have overstated its income from its North American business. The disclosure has triggered a formal investigation by the Financial Conduct Authority (FCA), which is examining potential breaches of UK listing and transparency rules.
Almost £600 million was wiped off WHSmith’s value in August, when the £30 million accounting error came to light, according to reporting by the Guardian. The company says it will restate profits for 2023 and 2024, and is seeking to claw back up to £7 million in bonuses awarded to former senior executives. For a business in the midst of a major strategic overhaul, the FCA investigation adds further pressure at an already challenging time.
Looking ahead, WHSmith has guided FY26 headline profit before tax to £100–115m, around 10% below consensus, suggesting near-term earnings pressure as reinvestment and restructuring continue. Analysts at Peel Hunt remain upbeat, reiterating a Buy rating and 800p target price, citing a strong underlying UK business they believe is undervalued despite current headwinds.
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