It’s been a while since consumers across the U.S. began voluntarily cutting back on spending to combat rising inflation.
A March YouGov report reveals that the perception of finances strongly shapes austerity intentions. For example, it explains that consumers who expect their financial situation to worsen may cut back on clothing purchases.
The US Commerce Department also noted that retail sales of clothing fell another 0.7% in the month to the end of December 2025.
I recently reported that WH Smith, owner of many Las Vegas Strip fashion stores, including the Marshall Rousso and Misura brands, is quietly closing 26 stores. The continued decline in tourism in Las Vegas, where tourists gamble more and shop less, has left high-end resorts feeling the pinch.
However, WH Smith’s regulatory documents reveal a much larger movement: a complete continental retreat, caused by a multi-million dollar corporate scandal.
WH Smith plans to exit North American fashion
Within the WH Smith/MRG fashion portfolio spanning the Strip, key brands include Marshall Rousso and Misura, as well as Paradiso Carina and The Dean.
However, the company is closing all of its fashion stores on the Las Vegas Strip due to declining sales, and the corporate giant plans to completely exit the North American fashion and specialty stores market.
According to the company’s official announcement of the 2025 Initial Results on the London Stock Exchange, the retailer is completely abandoning its leisurewear formats to focus an improved focus on the airport and travel areas.
WH Smith also announced the following are key to delivering profitable growth and improved capital returns:
Expanding the UK Travel essentials, health and beauty, and food to go offering
Strengthening focus on North American travel priorities
It originates from North American fashion and specialty stores and updates the InMotion North America portfolio
Strengthening ROW’s core markets, driving new growth through the franchise model, updating and exiting non-core markets Source: Declaration of WH Smith
Marshall Rousso and the owner of Misura are planning a complete exit from North American fashion. d3sign / Getty Images
Why WH Smith is completely out of the US
Weak sales aren’t the only reason for WH Smith’s decline in North America.
An independent investigation by Deloitte LLP revealed that the company’s North American division had been exceeding supplier revenue and advertising discount revenue.
Deloitte’s official review shows that the division was flouting the company’s rules for accounting for money received from suppliers, making it look like the division was bringing in much more money than it actually was.
“The method of accounting for supplier revenue adopted by the North American division was inconsistent with the Group’s accounting policy and therefore inconsistent with the requirements of the relevant accounting standards,” reads the document.
Due to overreporting of income in the past, the company must now go back and adjust the financial records of previous years.
The money from the suppliers is there, but the US office that recorded the supplier’s income before being allowed under the accounting policy, reveals the review document.
“This is a very serious matter that has been fully considered by the Board, and we sincerely apologize for the errors shown. Although the problems identified arose from our North American division, we recognize the importance of strengthening the control, governance and reporting processes throughout the Group,” said Annette Court, chairman of WH Smith PLC.
When the news broke, the company’s stock lost 42% in a single day, PublishersLunch reported, quickly evaporating nearly £600 million ($760 million+) from its total market value.
Surprisingly, the difference of millions of dollars was not caught by the official gatekeepers of the company. Global accounting giant PricewaterhouseCoopers (PwC) has been auditing the company since 2015 and has repeatedly signed off on inflated figures. Accounting errors were exposed by members of the internal finance team who officially blew the whistle.
The Financial Reporting Council (FRC) has also launched an investigation into PwC’s WH Smith research.
Why did the WH Smith accounting error occur, and how does it affect profits?
The Deloitte Review said the multi-million dollar error occurred due to intense pressure to hit financial targets and insufficient oversight of the US office.
“The revenue issue for North American suppliers arose on the back of a target-driven operating culture and a decentralized divisional structure with a limited level of oversight of the Group’s financial processes in North America,” the document reads.
The error affected WH Smith’s net profit. While investors and the stock market predicted that the North American division would report a net profit of £55 million ($72.5 million), the company announced an important update.
“In North America, Headline’s trading profit is expected to be £5m-£15m, down from the revised expectation of £25m announced on 21 August 2025 and the previous market expectation of £55m,” the company said.
As a result of the review, the company expects to receive payments of up to £10m in costs not less than FY25.
WH Smith’s CEO steps down as company receives “excessive bonuses“
The WH Smith scandal led to the resignation of CEO Carl Cowling. The UK’s Financial Conduct Authority (FCA) has also launched an official investigation into potential accounting breaches at the company’s North American unit.
Additionally, the board is working to restore “excessive bonuses paid to former executive directors following the restatement of profits for the fiscal years ended August 31, 2023 and August 31, 2024.”
Meanwhile, on April 7, 2026, WH Smith confirmed in a filing that instead of hiring a traditional group CEO, shareholders approved the appointment of Leo Quinn as the company’s executive chairman.
Which stores are closing?
The company did not specify which stores are affected by the closure. TheStreet previously reached out to the company for more information, but WH Smith declined to comment.
WH Smith fashion brands:
Marshall Rousso: It offers a collection of women’s lifestyle fashion apparel, including bags, jewelry, and shoes.
Misura: A modern menswear and lifestyle destination with boutiques located within the luxury casino resorts of Las Vegas.
Bella Scarpa: Italian for “beautiful shoe,” Bella Scarpa is “the perfect store to cater to women looking for feminine, alluring style with bold panache.”
The Dean: Including men’s fashion and other products from popular brands such as Boss, Herschel, Kiehl’s, Mizzen + Main, Shinola, Tumi, again Vince Camuto.
@ easily: It offers sportswear and accessories with emerging collections Puma, Prana, DYI, Shape, again The Marmot.
Aka: Men’s clothing ranges from lifestyle products Rock Revival again Hugo Boss to Tommy Bahama again Bugatchi.
Carina: Chic clothes featuring designer boys Joseph Ribkoff, Remember Meagain Alberto Makal.
Paradiso: The luxury fashion chain offers “alluring women’s clothing, footwear and accessories from an enviable list of designers.”
O Man: Offers a lifestyle boutique for men. Source: WH Smith North America
Related: Mall shoe retailer closes 82 stores as shoppers trade up
This story was originally published by TheStreet on Jul 2, 2026, where it first appeared on Selling part. Add TheStreet as a Preferred Source by clicking here.
