By Najat Kantouar

WH Smith said Chief Executive Carl Cowling resigned after an accounting review identified issues at its North America unit.

The British travel retailer said Wednesday that a review conducted by Deloitte covering the period from fiscal 2023 to 2025 identified the North America division's accounting treatment for supplier income wasn't consistent with the group's accounting policy. The review also pointed to an overstatement of supplier income recognition that related to how accounting standards were applied to the timing of the recognition, the company said.

As a result of the findings of the review, Cowling offered his resignation and the board accepted it, WH Smith said.

"Whilst the issues identified in the Deloitte review arose in our North American division, I recognize the seriousness of this situation and as group CEO feel it is only right that I step down from my position," Cowling said.

The board has started a formal search process for a permanent successor, but Andrew Harrison, chief executive of the U.K. division, will assume the role of group CEO on an interim basis, WH Smith said.

Cowling--who has been at the company for more than a decade and CEO since November 2019--is stepping down from the role and as board member with immediate effect, but will remain employed until Feb. 28 to ensure a seamless transition, it added.

WH Smith said it expects headline pretax profit before non-underlying items for the year ended Aug. 31 to range from 100 million to 110 million pounds ($131.4 million-$144.6 million). It had previously expected the metric to land in the region of 110 million pounds.

The company said it expects to book fees of up to 10 million pounds within non-underlying costs in fiscal 2025.

The company plans to issue guidance for fiscal 2026 when it releases fiscal 2025 results next month.

WH Smith shares are down 2.9% at 5.96 pounds. Year-to-date shares have fallen nearly 50%.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

November 19, 2025 03:55 ET (08:55 GMT)

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