WH Smith Cuts Profit Outlook and Raises £100m Capital Amid Middle East Conflict Impact
WH Smith has lowered its annual profit guidance and announced a £100m capital raise due to declining passenger numbers at its airport stores caused by the Middle East conflict. The retailer, which operates 1,200 outlets globally, expects pre-tax profits between £75m-£90m, down from previous guidance of £90m-£105m. The move reflects weakening consumer demand across all divisions and the company's efforts to strengthen its balance sheet and restructure unprofitable operations.
WH Smith Plc has issued a profit warning and capital raise plan as the Middle East conflict impacts travel retail sales. The company lowered its full-year pre-tax profit guidance to £75m-£90m from £90m-£105m, citing observed and anticipated declines in passenger numbers and weakening consumer demand. North American airport revenues fell 2% year-on-year in the seven weeks to June 6, while UK airport revenues remained flat. The retailer plans to raise approximately £100m through issuing 26 million new shares, and will book a £150m non-cash impairment charge after reviewing its business portfolio. Management indicated it assumes no near-term improvement in consumer confidence and will pursue a "self-help" programme involving store closures, franchising in sub-scale markets, and operational restructuring across Europe and North America.
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WH Smith Cuts Outlook, Seeks Capital as Iran War Weighs on Sales
WH Smith to raise £100m as it warns on profits due to Iran war
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