WH Smith CEO Carl Cowling Steps Down Amid Larger Accounting Error Than Thought

WH Smith's Chief Executive Officer Carl Cowling resigned from his position on Wednesday, following the publication of an independent review by Deloitte that revealed an accounting error in North America was larger than initially anticipated. The British retailer had previously announced a significant reduction in its profit outlook for the region, citing the error. According to the company's statement, the accounting error resulted in a downward revision of WH Smith's profit forecast for the year. The revised forecast now stands at £70 million, a £20 million reduction from the initial estimate. This adjustment has had a significant impact on the company's share price, with WH Smith's stock experiencing a 10% decline in value since the announcement was made. The market impact of WH Smith's revised profit forecast is not limited to the company's share price. The news has also raised concerns among investors and analysts about the retailer's ability to manage its operations and maintain profitability in the face of increasing competition. WH Smith's decision to sell its UK network of approximately 480 high street stores earlier this year was seen as a strategic move to focus on its more profitable North American business. Carl Cowling, who had led WH Smith since November 2019, offered his resignation following the publication of the Deloitte review. He will remain with the company until the end of February to assist with the transition of his duties. The company has not yet announced a replacement for Cowling, but it is likely that a new CEO will be appointed in the coming months. WH Smith's decision to sell its UK high street stores was a significant move for the company, and it remains to be seen how the revised profit forecast will impact its future plans. The company's focus on its North American business has been a key strategy in recent years, and the accounting error has raised questions about the effectiveness of this approach. As the company navigates this challenging period, investors and analysts will be closely watching for any further developments and how they impact WH Smith's future prospects.