WH Smith has lowered its full-year pre-tax profit forecast to approximately £75 million, marking a further reduction amid ongoing challenges in its business. The company had initially projected profits of up to £105 million earlier this year but has since revised expectations downward twice, most recently reducing the upper limit of its forecast to £75 million.

The retail group, which operates primarily in travel-related locations such as airports, railway stations, and motorway service areas following the sale of its 480 high street stores last year to Modella Capital, cited increased discounting, inflationary pressures, and lower trading margins as key factors impacting profitability. The shift away from its traditional high street presence was part of a strategic move to focus on its travel businesses, though that segment has faced headwinds from reduced passenger numbers linked to geopolitical events, including travel disruptions related to the war in Iran.

WH Smith also disclosed that it recently raised about £100 million from shareholders to strengthen its balance sheet and reduce debt amid falling profits. The company’s share price has fallen by approximately 45 percent over the past year, reflecting investor concerns over both operational setbacks and a previous accounting scandal in the United States that has affected the company’s reputation.

Leo Quinn, who became chairman and chief executive in April, is leading a turnaround effort aimed at improving returns, cutting costs, and maintaining capital discipline. He has shifted the company’s focus away from aggressive growth, emphasizing profitability and efficiency in the core travel business. Despite challenges, WH Smith reported a 4 percent increase in like-for-like revenue in the UK driven by greater passenger volumes and increased spending per traveler in airport outlets. However, like-for-like sales in North America declined by 3 percent over the year ending in August, attributed to softer demand and fewer passengers.

The retailer noted that promotional activity has increased as it sought to attract more customers, resulting in margin pressure that has offset gains from cost reductions and lower interest expenses. Analysts have expressed caution about the outlook, stating that concerns persist regarding WH Smith’s performance in the US market and questioning the sustainability of its recovery.

Founded in London in 1792, WH Smith has a long history in retail, including pioneering railway bookstalls in the mid-19th century. The recent sale of its high street stores resulted in those outlets being rebranded under a different company, TG Jones, while WH Smith continues to concentrate on its travel retail operations.