London, April 23, 2026, 19:03 BST
- WH Smith slashed its full-year headline pre-tax profit guidance, now looking for £90 million to £105 million—down from the previous £100 million to £115 million—and called off its dividend.
- WHSmith flagged a slowdown: fewer travelers and more cautious spending are dragging on performance even before the peak summer season kicks in. UK like-for-like sales have been flat through the first seven weeks of the second half.
- The stock ended the day 9.15% lower at 571 pence, after earlier plunging as much as 17%.
WH Smith slashed its full-year profit forecast and put dividends on ice Thursday, blaming the Middle East conflict for denting airport footfall and spending ahead of the key summer travel period. Shares dropped 9.15% in London, after falling as much as 17% earlier.
The warning comes at a tricky time for WH Smith. With the UK high street business offloaded last year, the company is now leaning hard into its travel sites. Management isn’t banking on a quick turnaround in consumer sentiment, and says the crucial test will be peak summer trading.
Pressure is mounting along the travel sector. TUI slashed its forecast on Wednesday, pointing to continued fallout from the conflict and restricted jet fuel access. Airport retail players—Avolta and DFS, part of LVMH—have flagged a drop-off in Gulf traffic; demand at those hubs was “very much down,” LVMH CFO Cecile Cabanis noted. Reuters
Revenue climbed 5% to £748 million in the six months ended Feb. 28. Still, headline pre-tax profit — WH Smith’s preferred figure, which excludes one-offs — dropped to £3 million from £21 million. The company also posted a statutory pre-tax loss of £25 million; a year ago, that was a £1 million profit.
Group-wide, like-for-like sales climbed 2% over the first seven weeks of the second half, a metric that tracks performance at stores open during both periods. UK sales, however, showed no growth. Flight disruption heading to the Middle East curbed air passenger numbers, and CFO Max Izzard flagged to analysts that spend per traveler had slipped — especially on long-haul staples like neck pillows.
WH Smith has suspended its dividend as it looks to reduce debt and strengthen its balance sheet, projecting full-year headline net debt of roughly £420 million. “Restoring confidence” is now the immediate focus, Executive Chair Leo Quinn said, calling the decision to halt the payout a prudent initial move. WHSmith
The unresolved fallout from the North America accounting issue still hangs over the retailer. Britain’s Financial Conduct Authority began probing possible listing and disclosure violations back in December, after the company restated its numbers. WH Smith, for its part, said Thursday it remains in contact with the regulator.
Quinn, who previously led Balfour Beatty, stepped in as executive chair on April 7. He’s promising a “relentless focus on driving cash, cost discipline and strengthening the balance sheet.” His arrival follows a leadership shakeup meant to steady operations and restore confidence. The Independent
The risk is clear enough. Should the summer travel season take another hit — fewer flights, softer demand, or fuel supply troubles — WH Smith’s already-lowered guidance may not hold up. Management flagged that projections rest on stable jet fuel availability. EU officials, meanwhile, are cobbling together backup plans after the International Energy Agency signaled possible shortages by June.
There were some positives in the latest figures. North America revenue climbed 10% in the first half, excluding currency effects. The rest-of-world business grew by 8%. WH Smith also cut the ribbon on new flagship locations at Heathrow’s terminals 3, 4 and 5 in March and April. Still, leadership stressed that the upcoming months will carry more weight than the half just posted.
