WH Smith issues second profit warning, seeks £100m raise

WH Smith, the British retailer focused on travel hubs, has issued a second profit warning this year and announced plans to raise approximately 100 million pounds from investors, citing a sharp decline in passenger numbers linked to the ongoing Middle East conflict and weakened consumer spending. The company's share price fell by around 15 to 16 percent in early trading on Wednesday, June 10.

The retailer now expects to report a full-year pretax profit of between 75 million and 90 million pounds, a significant reduction from its previous guidance of 90 million to 105 million pounds. In a statement, the company attributed the revised outlook to an observed and anticipated decline in passenger numbers and weakening consumer demand across all its divisions.

The disruption to air travel, specifically flight cancellations and route changes connected to the Middle East hostilities, was cited as a primary cause. For the 14 weeks to June 6, like-for-like revenues at its UK airport shops fell by 1 percent compared to the same period last year. The impact was more pronounced in the United States, where the company reported reduced passenger numbers linked to the conflict, rising air fares,...