WH Smith boss steps down as retailer issues fresh profit warning
Fears for high street favourite as boss steps down
- Carl Cowling has resigned as chief executive of WH Smith following an investigation into an accounting error within its US division.
- An independent review conducted by Deloitte uncovered "shortcomings" that led to an overstatement of profits in the American business by as much as £50 million.
- WH Smith has issued a fresh profit warning, now anticipating US profits between £5 million and £15 million, and wider group profits between £100 million and £110 million.
- Andrew Harrison, who heads the group’s UK division, has been appointed on an interim basis while a permanent successor is sought.
- The Deloitte review identified issues with accounting treatment for supplier income, a target-driven culture, limited group oversight, and weaknesses in the US finance team and control procedures.