WH Smith Shares Plunge as Retailer Launches Capital Raise and Cuts Profit Outlook

WH Smith (LON: SMWH) shares collapsed more than 17% on Wednesday after the travel retail giant launched a dilutive capital raise and slashed its full-year profit guidance, citing the ongoing impact of the Middle East conflict on passenger numbers and weakening consumer confidence.

The company announced plans to issue up to approximately 26 million new ordinary shares — representing around 20% of its existing share capital — through a combined institutional placing, a director subscription, and a retail offer via the RetailBook platform. Barclays, Goldman Sachs, and J.P. Morgan Cazenove are acting as joint bookrunners, with BofA Securities serving as financial adviser.

WH Smith said the capital raise is intended to reduce leverage to approximately 2x by the end of the 2026 financial year, down from what it acknowledged were “higher than targeted” current levels. Certain directors, including Executive Chair Leo Quinn and the Group CFO, will contribute approximately £1.725 million through a separate subscription.

Alongside the fundraise, the company issued a trading update for the 14 weeks to 6 June 2026, revealing group total revenue rose 5% on a constant currency basis but like-for-like (LFL) revenue grew just 2%. Crucially, the most recent seven weeks saw Group LFL revenue slow to just 1%, with North America declining 4% LFL and the Resorts division — heavily exposed to Las Vegas — down 11%.

The company now expects full-year headline profit before tax of between £75 million and £90 million, a significant downgrade, and warned of a non-cash impairment charge of up to £150 million related to goodwill and store write-downs across the InMotion and international portfolios.

Retail investors can participate in the offer via RetailBook with a minimum subscription of £250, with admission to the London Stock Exchange expected on 12 June 2026.