Shares in WH Smith have fallen by over 40% after the travel retailer cut its group profit guidance for the full financial year by £30m.

The profit guidance update follows an overstatement of expected headline trading profit in North America.

The travel retail firm now expects its headline trading profit for the region to total approximately £25m in the 12 months to 31 August 2025, down from previous expectations of £55m.

As a result, WH Smith now expects its group full-year headline profit before tax to be in the region of £110m.

Following this discovery, the board has instructed Deloitte to undertake and independent and comprehensive review.

WH Smith's latest statement comes after the firm sold its UK high street business to Modella Capital in June for £67m. The sale price was cut by £12m following a period of lower trading.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, said that shareholders have been "left reeling" by this damaging accounting error.

She added: "Getting it so wrong is not a good look and affects for reputation of the company. What investors want to see is sound financial management, and errors of this kind shake confidence in future guidance. It's particularly bruising for WH Smith given that it has its sights set on global expansion, with the US market a big part of its plans. This hasty recalculation of its current opportunities demonstrates it's not in such a strong position as hoped to progress its vision."

WH Smith will provide a further update at its preliminary results announcement.

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