WH Smith shares slumped, losing 15.73% to 414.8p on Wednesday, after the retailer cut its full-year profit guidance and announced a placing.
The group now expects headline profit before tax and non-underlying items of £75 million to £90 million for the financial year ending 2026.
Total group revenue in the 14 weeks to 6 June rose 5% on a constant currency basis, with like-for-like revenue up 2%.
Air like-for-like revenue was down 1% for the period, while North America like-for-like was also down 1% over 14 weeks and deteriorated to minus 4% in the most recent seven weeks.
Management attributed the revised guidance to Middle East flight disruption weighing on passenger volumes, softer consumer demand, increased promotional activity, and gross margin pressure, and said it is not assuming any near-term improvement in consumer confidence.
The group also flagged a significant non-underlying non-cash impairment charge of up to £150 million for the full year, covering goodwill and store impairments following its InMotion review, store exits and restructuring outside its core markets.
To strengthen its capital position and support its ongoing transformation, WH Smith is conducting a placing, with full details set out in a separate announcement.
Management maintained that North America planning assumptions for the year remain revenue growth of 4% to 6% and a headline trading profit margin of approximately 5%, and reiterated that trading profit is heavily weighted to the final quarter.
