Macy’s Employee Hides Up to $154 Million in Expenses, Delaying Q3 Earnings Report
Macy’s has hit a bit of a bump in the road with news that a former employee hid up to $154 million in expenses, causing a delay in their Q3 earnings report. According to CNBC, the employee manipulated small package delivery expenses between Q4 2021 and now, creating quite the headache for the company.
To address the issue, Macy’s has launched an independent forensic accounting investigation and decided to postpone its earnings report to December 11. Thankfully, there’s no evidence that these accounting discrepancies had any impact on vendor payments or cash management activities, as reported by CNN.
Macy’s CEO, Tony Spring, emphasized the company’s commitment to ethical conduct in a statement, reassuring customers and investors alike that they are diligently working to resolve the situation. While this incident has raised concerns about the company’s performance, Macy’s is focused on serving its customers and gearing up for a successful holiday season.
Despite these challenges, Macy’s remains optimistic about the future. In their preliminary report, they noted a slight dip in sales due to various factors like unseasonably warm weather and underperformance in certain stores. However, there were bright spots as well, with some segments of the business showing growth. First 50 locations saw comparable sales increase for the third quarter in a row, while luxury brands like Bluemercury and Bloomingdale’s also reported positive sales.
Looking ahead, Macy’s is planning to close around 150 underperforming stores while continuing to invest in their successful brands. With November sales trending positively, the company is hopeful about the upcoming holiday season and the opportunities it may bring.
