WH Smith, the travel retailer that runs shops in airports, railway stations and hospitals, said it expected full-year profits to land in line with expectations at around £75 million.
The figure, covering the year to 31 August, reflects thinner trading margins as the group leaned on heavier promotions, pared back brand marketing and absorbed inflation, partly offset by central cost savings and lower interest charges.
It is the group's first full financial year as a pure-play travel business, following the sale of its UK high street shops to Modella Capital in 2025.
The update came ahead of preliminary results due on 12 November.
Trading over the fourth quarter, which spans the peak summer travel season, was described as solid.
Group revenue rose 5% over the year, with like-for-like sales, which strip out new space, up 2%.
The UK was the standout, with fourth-quarter revenue up 7% and like-for-like sales ahead 4%, helped by passenger growth and higher spending per head.
North America proved weaker, with like-for-like revenue down 3% in the quarter as passenger numbers eased and consumer demand softened.
Its Resorts arm was the sorest spot, with fourth-quarter revenue down 26% year on year as visitor numbers fell and the group pruned its fashion store estate.
WH Smith is also retreating from continental Europe, having exited Norway during the year and agreed to leave Denmark and Sweden in early 2027, with the Netherlands to follow on lease expiry.
The company said it was actively managing the division to shut unprofitable shops and shift smaller markets to a franchise model.
It also completed the sale of Cult Pens, an online stationery business, in early September.
Net debt is expected to be around £325 million at the year-end, with leverage of around 2.0 times, after the group raised £103 million of equity in June to strengthen its balance sheet.
WH Smith said its transformation was making good progress, underpinned by tighter cost and cash management and continued investment in higher-return travel space.
