British retailer WH Smith plunges 38% after cutting U.S. forecast on accounting error
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LONDON — European stocks retreated on Thursday as regional traders monitored corporate updates from the region.
By 9:50 a.m. in London (4:50 a.m. ET), the pan-European Stoxx 600 was down 0.18%. The U.K.’s FTSE 100 was flat after notching a second straight record closing high, while the French CAC 40 shed 0.43% and Germany’s DAX dipped 0.1%.
Looking at individual stocks, British retailer WH Smith plummeted 38% after the company revised its guidance for North America.
WH Smith share price
Ahead of the end of its fiscal year, WH Smith said it had identified a £30 million ($40.35 million) “overstatement” of anticipated headline trading profit in its North America branch.
“WHSmith now expects Headline trading profit from the North America division for the financial year ending 31 August 2025 to be approximately £25m, down from previous market expectations of approximately £55m,” the company said in a statement on Thursday morning.
Meanwhile, shares of ticketing giant CTS Eventim tumbled 19% on Thursday, making it the worst performer on the Stoxx 600. The company reported record first-half revenue, but said its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) fell 8.9% year-on-year in the second quarter of the year. The company’s live entertainment segment meanwhile reported a 39.7% drop in adjusted EBITDA in the second quarter.
At the other end of the index, Aegon gained 6.7% after the company reported a first-half net profit of 606 million euros ($706.4 million), reversing course from the loss of 65 million euros it posted during the same period a year earlier.
Asia-Pacific markets mostly rose overnight, with Australian stocks among the top gainers. The positive sentiment in Asia was a departure from the mood on Wall Street on Wednesday as tech stocks dragged the broader market lower. U.S. stock futures were little changed in overnight trading.
Minutes from Federal Reserve’s July meeting, published Wednesday, showed policymakers are worried about the state of the labor market and inflation, though most agreed that it was too soon to lower interest rates.
Fed Governors Christopher Waller and Michelle Bowman dissented against holding rates steady, marking the first time two voting Fed officials have done so since 1993.
Traders are also focusing on key speeches from Fed officials when they convene in Jackson Hole, Wyoming, for the Fed’s annual economic symposium on Thursday. Fed Chair Jerome Powell is due to speak on Friday, with investors looking for clues on the path of interest rates.
Fed funds futures are pricing in about an 82% likelihood of the central bank cutting interest rates at its next policy gathering in September, according to CME’s FedWatch tool.
