WH Smith Expects Annual Profit at the Lower End of Forecast Guidance
WH Smith's Financial Performance and Strategic Response
Profit Outlook Impacted by External Factors
Sept 16 (Reuters) - British retailer WH Smith said on Wednesday it expects annual profit at the lower end of its earlier forecast range, as margins were squeezed by inflation turbo-charged by the Iran war and higher promotional activity.
Turnaround Efforts and Store Closures
North American Operations Under Review
The company is reviewing its North American operations and shutting underperforming stores in a turnaround effort after cutting its profit forecast twice in two months and raising capital earlier this year as the war hit travel and passenger spending.
Profit Forecast and Sales Performance
Headline Pre-Tax Profit Expectations
WH Smith, which sells everything from books to travel accessories and confectionery, expects headline pre-tax profit of about £75 million ($101 million) for the year ended August 31, compared with its earlier view of between £75 million and £90 million.
Regional Sales Trends
North America
Its like-for-like sales in North America fell 3% in the fourth quarter, reflecting lower passenger volumes and softer demand, while sales in the UK grew 4%.
United Kingdom
($1 = 0.7418 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Rashmi Aich)
