WH Smith shares slump as cuts profit guidance and suspends dividend

WH Smith PLC on Thursday suspended its dividend and lowered guidance due to the Middle East crisis as the travel retailer reported reduced interim profit.

The Swindon, England-based company said it is taking a more cautious outlook, reflecting likely lower passenger numbers and weaker consumer confidence.

In response, shares in WH Smith fell 11% to 559.28 pence each in London on Thursday.

The stock has fallen 38% in the past 12 months after an overstatement of around £30 million of expected headline trading profit in North America. This led to the departure of chief executive Carl Cowling.

Pretax profit before non-underlying items slumped to £3 million in the half-year to February from £21 million the year prior.

Revenue rose 4.5% to £748 million from £716 million.

For the current financial year, WH Smith expects to deliver pretax profit before non-underlying items of £90 million to £105 million, reduced from £100 million to £115 million previously.

‘Much will depend on the peak summer trading period and the group assumes no immediate improvement in consumer confidence and assumes that jet fuel supplies can be maintained,’ WH Smith said.

In addition, the company suspended the dividend to ‘reduce debt and strengthen the group’s financial position.’

Executive Chair Leo Quinn said: ‘The immediate focus is to restore confidence and ensure the right foundations are in place to support profitable growth and long?term value creation.’

He pledged a focus on driving cash, cost discipline and strengthening the balance sheet.

‘As a first step, the board has taken the prudent decision to suspend the dividend,’ he added.

WH Smith said in the first seven weeks of trading for the second half of the financial year, like for like revenue was up 2%.

Copyright 2026 Alliance News Ltd. All Rights Reserved.