WHSmith store at London Heathrow T2.

UK-based global travel retailer WHSmith has revised down its profit forecast for the full financial year, citing concerns over continuing regional instability in the Middle East, and also headwinds in North America.

The company made the profit warning in a trading update on 10 June, accompanied by the announcement of a capital raise that was priced the following morning. The raise was implemented to shore up the company’s financial position and strengthen the balance sheet. The result was that the share price dropped by -14.9% over the past two days. The profit warning triggered the initial sell‑off, with the discounted capital raise adding further downward pressure.

This is the second major fall following a slide in August 2025 when the retailer overstated its North America division’s annual trading profit forecast. Before the blunder, the stock was trading at more than £11 per share. On Thursday 11 June, it closed at £4.19, a -62% decline versus the summer 2025 peak.

In a statement about the revised outlook, WHSmith said: “Given the ongoing uncertainty from the Middle East conflict and pressures on gross margins – including the recent deterioration in the North America division – the group expects to deliver FY26 headline group profit before tax and non-underlying items of £75m – £90m.” This is $101m – $121m at today’s FX rates. The company’s April profit forecast was significantly higher at £90m – £105m.

In North America, WHSmith is now planning for FY26 revenue growth of between 4% and 6% and a headline trading profit margin of ~5%. For its other divisions – UK and Rest of the World/Other (ROW) – trading assumptions are unchanged.

The revisions reflect “an observed and anticipated decline in passenger numbers and weakening consumer demand across all divisions”. The costs of increased promotional activity and inflation headwinds are adding to the pressures. WHSmith was also downbeat on consumer confidence with an assumption of “no near-term improvement”.

As a result of a review of the InMotion business in North America, a store exit programme, and ROW restructuring, the retailer anticipates a significant non-underlying non-cash impairment charge of up to £150m / $201m for the full year relating to goodwill and store impairments.

Performance by geography

In the trading update for the 14 weeks to 6 June, 2026, the company’s revenue increased by 5% (at constant currency), but the like-for-like (LFL) lift was just +2% year on year (YOY).

Growth by geography and sub-sectors.

The company’s three divisions showed mixed results. UK revenue was up +5% YOY, and 2% LFL as air passenger numbers continued to be impacted by disruption to Middle East flight schedules. Weaker consumer confidence also impacted spend per passenger, resulting in lower growth. LFL revenue in the Air sub-sector was down -1%, Hospitals grew by +7%, and Rail +2%. One-stop-shop openings at Belfast, East Midlands, Heathrow and Liverpool airports contributed to growth.

In North America, the resorts sub-sector was a drag as LFL revenue fell -9%, driven by a reduction in Las Vegas visitor numbers. Air was up +1%, but in April and May turned negative as passenger numbers fell on the back of rising air fares and reduced airline capacity linked to the Middle East conflict. North America’s overall revenue increased by +10% (at constant currency) YOY but was down -1% LFL.

As a result of a softening in consumer demand, further promotional activity has been and will be required, whilst brand marketing investment is reducing and inflation headwinds continue. Together, these have resulted in gross margin pressure.

For ROW/Other, revenue fell by -2% YOY at constant currency and increased +3% LFL, but this has fallen to +2% in recent weeks as passenger growth softened. In the 14 weeks, five uneconomic stores were closed in Norway. WHSmith said: “Further landlord discussions are advancing to either exit or transition stores to a franchise model.”

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