WH Smith Cuts Profit Outlook, Launches £100m Share Issue as UK Sales Grow 2%

WH Smith lowered its annual pre-tax profit outlook to between £75 million and £90 million from its prior range of £90 million to £105 million. The company said the revision reflects observed and anticipated declines in passenger numbers and weakening consumer demand across all divisions. This marks the second time in 2026 that the retailer has reduced its profit expectations.

WH Smith will issue up to 26 million new shares, representing about 20 per cent of its existing share capital, to raise approximately £100 million. A separate offer will be made to retail investors in the UK. 73 million.

The company’s share price fell around 15 per cent in early trading on Wednesday after the announcement. Revenues from UK airport shops dipped 1 per cent in the 14 weeks to 6 June compared with the same period a year earlier, partly due to flight cancellations and disruptions linked to the Middle East.

In the US market, the decline in airport traffic was more pronounced because of the conflict and rising air fares.

Hospital shop revenues in the UK rose 7 per cent year-on-year and rail revenues increased 2 per cent, helping overall UK sales grow 2 per cent. WH Smith attributed the changed outlook to current economic uncertainty and its effect on consumer spending.

” WH Smith has been selling, exiting or renegotiating loss-making or low-returning situations, including replacing company-owned shops with franchises.

The company sold its high street chain to private equity firm Modella Capital last year; the chain was subsequently rebranded to TG Jones. On Tuesday the UK accountancy watchdog launched an investigation into PwC over its auditing of WH Smith. The retailer admitted last year that it overstated profits for its North American business by as much as £50 million because of issues with its audit process.