The FTSE 250 retailer, which operates stores in airports and train stations, is issuing 26 million new ordinary shares to navigate a cooling retail environment. Management, including Chair Leo Quinn and CFO Max Izzard, intends to participate in the capital injection by subscribing for 1.725 million pounds of stock. This move comes as the company faces a significant shift in consumer behavior, particularly within its North American division.
In section Market Quotes
WH Smith Shares Sink to 16-Year Low Amid Profit Warning
Shares of WH Smith plummeted 17% to 407.80 pence in early morning trading, hitting their lowest point since September 2010. The retailer’s sharp decline follows a double blow: a downgraded full-year profit outlook and the launch of a 128 million pound capital raise to shore up its balance sheet.
WH Smith now projects an adjusted pretax profit between 75 million and 90 million pounds for the fiscal year ending August 31, down from its previous April forecast of 90 million to 105 million pounds. The firm cited geopolitical instability in the Middle East as a primary catalyst for the downturn, noting that rising airfares and reduced flight capacity have hampered passenger numbers. With like-for-like revenue in North America falling 2% in recent weeks, the company warned that it anticipates no immediate recovery in consumer confidence as it heads into the final quarter.
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