By Julia Fadi Nasser

Shares of WH Smith fell after the London-listed retailer cut its guidance for the year and suspended dividend payments due to the effects of the war in the Middle East.

Shares were down 69 pence, or 11%, at 559.50 pence in late morning European trading after hitting a low of 521.50 pence earlier in the session. They are currently 12% lower over the year to date.

The seller of stationery, books and magazines in airports and train stations said Thursday that it expects to report headline pretax profit of 90 million pounds to 105 million pounds ($121.5 million to $141.8 million) compared with previous guidance of 100 million pounds to 115 million pounds provided in December.

It said the forecast is based on the assumption that revenue would grow 3% to 5%, compared with a previous expectation for 4% to 6% growth.

The company said it plans to suspend dividend payments to reduce debt and strengthen its financial position and would look to reinstate payouts when able to.

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

The company made the disclosure as it reported a fall in headline pretax profit to 3 million pounds, from 21 million pounds for the comparable period a year earlier.

Quinn said the board plans to focus on rebuilding investor confidence and growing margins, cash flows, and returns.

Write to Julia Fadi Nasser at julia.nasser@wsj.com

(END) Dow Jones Newswires

April 23, 2026 06:35 ET (10:35 GMT)

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