The CEO of WH Smith has resigned after accounting inconsistencies in supplier income recognition within its North America division were identified.
An independent Deloitte Review said that there would be a net reduction in supplier income of approximately £22 million and additional one-off inventory costs of around £20m in the division.
North America’s headline trading profit has been revised to £5m-£15m, down from the revised expectation of around £25m announced on 21st August 2025 and previous market expectations of £55m.
WH Smith PLC’s headline trading profit for the year ended 31st August 2025 is now anticipated to be between £100-110m.
Carl Cowling, who has led the company since November 2019 – having joined it in 2014 – offered his resignation, and the board has accepted it.
Andrew Harrison, CEO of the UK division, has taken on the group CEO role on an interim basis. Cowling will remain employed by the company until 28th February 2026 to ensure an orderly handover of his duties.
“The board will look to new leadership to oversee and implement the remediation plan and lead the company through the next phase of its strategy as a pure-play global travel retailer,” it stated.
The Deloitte Review found that the overstatement of supplier income was “substantially a timing rather than an existence issue, and relates to the application of accounting standards”.
The group appointed Huw Crwys-Williams as CEO for the North America division in June 2025. It said it is now reviewing the North America leadership team.
It has also taken steps to strengthen its group finance and audit and risk teams, it said, and is developing a “robust remediation plan which will be monitored and governed by the board and appropriately assured”.
Cowling said: “Whilst the issues identified in the Deloitte review arose in our North American division, I recognise the seriousness of this situation and as group CEO feel it is only right that I step down from my position.
“It has been a privilege to lead WHSmith for the past six years as CEO. During this time, we have guided the company through the unprecedented challenges of the pandemic, pioneered our highly successful one-stop-shop for travel essentials, and completed the divestment of our High Street and online businesses.”
Annette Court, chair, commented: “This is an extremely serious matter that has had the board’s full attention, and we sincerely apologise for the shortcomings identified.
“We have acted swiftly to build a comprehensive remediation plan and will reinforce the financial discipline and integrity that underpin our business moving forward.
“On behalf of the company and the board, I would like to thank Carl for his significant contribution to WHSmith over the last 11 years.
“I am pleased that Andrew has agreed to accept the position of interim CEO. Andrew will join the board with immediate effect. With the support of an external executive search firm, the board is now committed to appointing the strongest candidate to lead the next phase and guide the group’s long-term growth strategy.”
Harrison added: “Our immediate priority is to maintain a relentless focus on operational excellence and execute the remediation plan with discipline.
“We have a very resilient business and the fundamentals of the Group are strong. Working alongside Max Izzard, group CFO, I am confident that we can move forward and position the Group for long-term growth and success.”
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