Macy’s delays Q3 earnings report, says employee hid up to $154 million in expenses
Macy’s has delayed the release of its third quarter earnings report in order to investigate an accounting error. An employee responsible for small package delivery expense accounting made inaccurate entries that hid between $132 million to $154 million in expenses from late 2021 through November 2024.
The company has confirmed that the employee involved is no longer with Macy’s and that there has been no impact on cash management or vendor payments due to this error. While this delay may be disappointing, it’s important to note that the accounting discrepancy is relatively small in comparison to Macy’s overall expenses, which total over $8 billion annually.
In its preliminary results, Macy’s reported that same-store sales were down by 1.3%, slightly better than expected. This news caused Macy’s stock to drop by 3%, as investors reacted to both the accounting error and the company’s financial performance.
Looking ahead, Macy’s plans to share its fourth quarter and full-year outlook by December 11, 2024, once the independent investigation is completed. The company’s stock has experienced a 20% decline year-to-date, trading at $16 per share, well below a previous buyout offer that was rejected earlier this year.
Despite these challenges, Macy’s continues to implement its Bold New Chapter Strategy, focusing on enhancing the customer experience and optimizing its store base. By investing in high-performing locations and closing underperforming stores, Macy’s aims to drive future growth and improve same-store sales.
Overall, while this accounting error is a setback for Macy’s, the company remains focused on serving its customers and navigating a successful holiday season. Investors should continue to monitor Macy’s as it addresses these issues and works towards a stronger financial performance in the future.
