WH Smith Plc expects profit to be at the bottom of its guidance range as inflation and increased promotions weigh on the British travel retailer’s performance. Headline group profit before tax and non-underlying items will likely be about £75 million ($101 million) this fiscal year, down from a prior forecast of as much as £115 million. The retailer suspended its dividend in April, citing reduced demand at travel hub stores due to the Middle East conflict, on top of recovering from overstating trading profit in its North American business.

Shares fell as much as 4.7% in London and were down 43% year-to-date through Tuesday’s close. The UK business improved in its fiscal fourth quarter, with like-for-like sales up 8% at hospital stores and 4% at railway stations. WH Smith sold its UK network of about 480 high street stores to Modella Capital last year to focus on airports, train stations and hospitals.