WH Smith is exiting the North American fashion and specialty-store market entirely, closing all its Las Vegas Strip apparel locations including Marshall Rousso and Misura, after an independent investigation by Deloitte LLP revealed the division systematically overstated supplier income and promotional rebate revenues. The accounting irregularities, which went undetected by auditor PricewaterhouseCoopers since 2015, led to a 42% single-day stock crash that wiped out roughly £600 million in market value. The company now expects North American headline trading profit to fall to between £5 million and £15 million, down from a previous market expectation of £55 million. CEO Carl Cowling has stepped down, the Financial Conduct Authority has launched an enforcement investigation, and the board is seeking to recover overpaid bonuses from former executive directors. WH Smith will refocus on airport and travel convenience stalls, while also reviewing its InMotion North America portfolio.
WH Smith PLCAccounting scandal leads to FCA investigation, exit from North American fashion, and 42% stock crash.
PwC failed to detect accounting irregularities since 2015, facing reputational damage and potential regulatory scrutiny.