WH Smith cuts profit outlook, suspends dividend as Iran war hits air travel

(Sharecast News) - Travel outlet retailer WH Smith cut its full-year profit forecast and suspended its dividend, citing the impact of the Iran war on flight schedules to the Middle East. The group now expects to deliver full-year headline group profit before tax and non-underlying items of £90m - £105m compared with previous estimates of £100m - £115m. Half year profits on the same basis fell to £3m from £21m with its UK operations hit by inflation and the cost of refurbishing airport stores.

"In light of the uncertainty arising from the conflict in the Middle East, the group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence," the company said on Thursday.

"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."

It added that group like-for-like sales in the first seven weeks of the second half of fiscal 2026 rose 2% with flat growth in the UK due to flight disruptions to the Middle East. In North America, LFL revenue growth was 2% and rest of the world up 5%.

"The immediate focus is to restore confidence and ensure the right foundations are in place to support profitable growth and long‑term value creation," said chief executive Leo Quinn.

"Moving forward, the board and management team will have a relentless 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."

Reporting by Frank Prenesti for Sharecast.com