WHSmith chief executive Carl Cowling has stepped down with immediate effect after an independent Deloitte review uncovered significant accounting issues that led the retailer to overstate profits in its US division by up to A$100 million.

The resignation comes as the British retailer—whose Australian presence spans more than 60 stores in airports, rail hubs, and universities, including brands such as InMotion, Gadgetshop and Zoodle—faces mounting scrutiny over its financial controls.

WHSmith chief executive Carl Cowling

Cowling will leave his roles as group CEO and board director immediately, though he will remain employed by WHSmith until 28 February 2026. The company has begun a formal search for his successor.

According to WHSmith, Deloitte’s investigation revealed “shortcomings” across the business, including weaknesses within the finance team and inadequate systems, controls, and review processes related to supplier income across both commercial and finance operations.

Addressing his departure, 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.”

WHSmith chair Annette Court praised Cowling’s leadership, saying: “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. Upon being appointed as group CEO in November 2019, Carl successfully navigated the company through the global pandemic and, more recently, has strategically repositioned the group as a pure-play travel retailer. We wish Carl every success in the future.”