WHSmith saw profits decline in its annual results, amid a “difficult” end to the year.

The retailer saw headline pre-tax profit and non-underlying items drop to £108m for the year ended 31 August 2025, from £114m the year before.

The results come after WHSmith sold its UK high street arm for £76m to Modella Capital earlier this year, as it pivoted to focus solely on its travel retail division.

The business also sold online card business Funky Pigeon to Card Factory for £24m over the period. 

According to its latest results, headline trading profit fell to £159m over the period, from £170m the year prior.

Following the brand’s profit warning, WHSmith said headline trading profit was forecast to come in between £100m and £110m.

Group sales rose 5% over the year to £1.55bn. Revenues in its UK arm were also up 5%, while North America sales increased 7% and the rest of the world sales jumped 12% on a constant currency basis. 

WHSmith said it expects full-year headline pre-tax profit for FY26 to come in between £100m and £115m.

Its results follow a profit warning after the company’s North America income was found to have been overstated.

The UK’s financial regulator has launched a formal investigation into the retailer over its accounting errors, as the business seeks to recover bonuses from ex senior executives.

The Financial Conduct Authority today (19 December) said that it was examining possible breaches of UK listing and transparency rules after WHSmith said that it would restate profits for 2023 and 2024 in November. 

WHSmith cut forecasts for its North America arm in August, attributing the figures to the way it had recognised payments from suppliers whilst running promotions. 

The retailer said it was “committed to co-operating fully with any engagement in relation to the North America accounting issue from any regulatory body or other authority”.

WHSmith interim group CEO Andrew Harrison said: “It has been a difficult end to the year for the group. 

“The board and I are acutely aware that we have much to do to rebuild confidence in WHSmith and deliver stronger returns as we move forward. 

“We are acting at pace progressing our remediation plan and are committed to ensuring that we strengthen our financial controls and governance as we move forward.”

He continued: “Following the sale of our UK high street business and Funky Pigeon during the year, we are now a pure-play global travel retailer. 

“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.”

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