‘Macy’s employee hid up to $154 million in expenses’ as Q3 earnings report delayed

Macy’s, the well-known department store chain, recently made headlines when it announced a delay in releasing its quarterly earnings report. The reason? An employee had intentionally hidden up to $154 million in expenses over the course of several years. The company, which includes Bloomingdale’s and Bluemercury among its brands, was set to report its quarterly results on Tuesday, but this unexpected discovery led to a delay.

After conducting an independent investigation and forensic analysis, it was revealed that a single employee was responsible for hiding expenses totaling between $132 million to $154 million. The issue was related to delivery expenses in one of the accrual accounts. Despite this serious accounting discrepancy, Macy’s assured that there was no impact on its cash management activities or vendor payments. The employee involved in the misconduct is no longer with the company, and no other employees were implicated in the investigation.

As a result of this discovery, Macy’s has postponed the release of its third-quarter earnings. The company aims to complete its independent investigation and provide a full financial report by December 11. Chairman and CEO Tony Spring emphasized Macy’s commitment to ethical conduct and expressed confidence in resolving the matter promptly.

In the meantime, Macy’s did share some preliminary results for the third quarter. Net sales decreased by 2.4% to $4.74 billion, slightly exceeding the average analyst estimate of $4.72 billion. The company’s comparable sales saw varying performance across its different divisions, with Macy’s and Bloomingdale’s experiencing declines while Bluemercury reported an increase in sales. Additionally, Macy’s “First 50” stores, which have received special attention and renovations, showed a comparable sales gain of 1.9%.

Despite this internal challenge, Macy’s remains focused on serving its customers and executing its strategy for a successful holiday season. The company’s stock fell slightly in response to the news, but with a clear plan of action and commitment to transparency, Macy’s is determined to overcome this setback and continue delivering quality products and services to its customers.