WH Smith (SMWH): FY26 guidance cut and dividend suspension

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£612m · 419.2p · −33% since the first step

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FY26 guidance cut and dividend suspension

FY26 PBT confirmed at c.£75m

NOV12 Next: Preliminary results and priorities for the year ahead in 19 days

Every step · 3

23 Apr 2026 Guidance lowered; dividend suspended – 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... ↗
10 Jun 2026 Guidance cut a second time to £75m-£90m – the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items of £75m - £90m. ↗
16 Sep 2026 FY26 PBT confirmed at c.£75m – Full year Headline Group profit before tax and non-underlying items expected to be c.£75m1. ↗

What is happening

WH Smith: FY26 guidance cut and dividend suspension – FY26 PBT confirmed at c.£75m. ['FY26 PBT confirmed at c.£75m']

In short: On 23 April 2026 the Group cut FY26 PBT guidance and suspended the dividend. It cut again on 10 June 2026 to £75m-£90m. On 16 September 2026 it said FY26 PBT would be c.£75m, the bottom of that range, on lower margins from promotions, less brand marketing and inflation, offset by central cost cuts and lower interest. Net debt is expected at c.£325m, against c.£420m guided on 10 June.
Announced: 23 Apr 2026 · Guidance lowered; dividend suspended
Latest: 16 Sep 2026 · FY26 PBT confirmed at c.£75m
Margins: UK c.13-14% (from c.14-15%), NA c.7% (from c.7-8%), ROW c.4% (from c.5%)
North America: FY26 revenue growth 4%-6%; headline trading margin c.5% (previously c.7%)
Other divisions: All other divisional trading assumptions unchanged
Impairment: Non-underlying non-cash charge of up to £150m for goodwill and store impairments
Assumptions: No near-term improvement in consumer confidence; jet fuel supplies maintained; profit weighted to final quarter
FY26 PBT: c.£75m (16 Sep 2026), down from £90m-£105m before 10 June
Margin drivers: More promotions, less brand marketing and inflation, offset by central cost reductions and lower interest
Next milestone: Preliminary results on 12 November 2026

Preliminary results and priorities for the year ahead (12 Nov 2026).

From the company's own announcements. Not investment advice.

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