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WH Smith warns on profit as Iran war hits sales
WH Smith forecasts £75m-£90m profit amid travel disruptions and reduced consumer spending, prompting a £100m share raise and store closures.
- On Wednesday, travel retailer WH Smith cut its annual profit forecast for the second time this year and launched a £100m equity raise to bolster its balance sheet amid Iran war disruptions to global travel.
- Global travel disruptions driven by the Iran war have hurt passenger spending, causing UK airport shop revenue to dip 1% over 14 weeks. Weakening consumer demand is impacting all divisions as airlines cut capacity.
- The group now expects headline annual profits between £75m and £90m, down from previous estimates of £90m to £105m. It also anticipates up to £150m in non-cash impairment charges from North American store closures.
- Executive Chair Leo Quinn said the company is embarking on a "self-help programme to strengthen the group's operations," though analyst Richard Hunter from Interactive Investor warned it "could prove to be the last roll of the dice for the company."
- Separately, the UK accountancy watchdog launched an investigation on Tuesday into PwC regarding audits of the retailer's North American division. This follows the firm's admission last year that it overstated profits by up to £50 million.
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Evening StandardReposted by 
perspectivemedia.com
perspectivemedia.comWH Smith warns on profit and plans equity raise as airport passenger numbers dip
The chain, which incorporates shops in travel locations such as airports and train stations, said consumers had been tightening their budgets.
·London, United Kingdom
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Coverage Details
Total News Sources15
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
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