WH Smith shares crash to 17-year low as rising costs and travel disruption hit profits

See more This is Money on Google - save us as a Preferred Source Updated: 05:35 EDT, 16 September 2026 WH Smith slumped to a 17-year low this morning after rising costs and promotions hit profits, as it battles ongoing travel disruption caused by the Iran war. The retailer, which sold its UK high streets business to focus on its travel arm last year, expects pre-tax profits of £75million, at the very bottom of its annual guidance. The downbeat outlook represents a sharp fall from the £108million in underlying profits reported for 2024-25.Shares fell 1.6 per cent to 357p, their lowest level since 2009. War across the Middle East has hit the travel sector and rising prices have made people more selective with their spending, forcing WH Smith to cut its profit forecast twice in two months and raise capital earlier this year. A cost-cutting drive and lower interest costs failed to offset the full impact of more promotions and rising costs. In a pre-close trading update, WH Smith said like-for-like revenue in its fourth quarter fell by 3 per cent compared to a year ago. Turbulence: WH Smith shares fell as the retailer posted its latest pre-close trading update There was some sign of recovery in airport sales, which increased by two per cent over the peak summer season. Meanwhile, hospital site sales rose by 8 per cent and revenues from shops in rail stations grew by 4 per cent in its final quarter. But challenges remained in its US business, which accounts for around a quarter of its revenues, where like-for-like revenue fell by 3 per cent. Its resorts division saw sales tumble by 26 per cent year-on-year, reflecting lower visitor numbers. Dan Coatsworth, head of markets at AJ Bell, said: 'WH Smith is having a hard time convincing the market that its problems can be solved quickly. A trading update has failed to breathe new life into its share price as the business seems to be drifting sideways rather than taking big strides ahead.'North America has been the worry point and fourth quarter revenue growth has slowed versus the previous three months.' The FTSE 250 firm has struggled to recover from last year's accounting blunder, seeking £103million from investors to shore up its balance sheet in June. The retailer said it was seeing 'good progress on the group’s transformation agenda', with costs being reined in and some targeted investment in its travel essentials offering. Analysts at Peel Hunt said: 'WH Smith has worked hard on debt (it will be c.£325million at the prelims) and there are no changes to forecasts today, with £75million the likely outcome for PBT. Next year’s numbers, however, do not look underpinned as the concerns surrounding the US persist: from 10x PE, we stay Hold.'Coatsworth, of AJ Bell, added: 'The rebound in the oil price since mid-summer is unhelpful as it pushes up the cost of getting from A to B, which threatens to dampen activity at WH Smith’s all-important travel hubs.' DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you