Macy’s says employee hid up to $154 million in expenses since 2021 – NBC News
package deliveries concealed up to $154 million in expenses over nearly three years. The company shared the news as it delayed the release of its financial results for the third quarter, citing an ongoing investigation.
The individual involved in hiding the expenses is no longer with Macy’s, according to the department store operator. While specifics about the departure were not provided, Macy’s declined to offer further comments beyond the initial announcement.
This development comes at a challenging time for Macy’s, a company deeply linked to the holiday season through iconic events like the Macy’s Thanksgiving Day Parade. The retailer has faced declining sales and underperformance in recent years. Due to the ongoing investigation, the company postponed the release of its full financial results until December 11, after initially planning to share them before the opening of U.S. stock markets on Tuesday.
During the investigation, Macy’s found that the employee responsible for managing small package delivery expenses had intentionally entered incorrect accounting accruals, leading to the concealment of approximately $132 million to $154 million in expenses over several quarters. Although this amount is a small fraction of the $4.36 billion in overall delivery expenses recorded by Macy’s during the same period, it exceeds the $105 million in net profit reported for the previous fiscal year.
Macy’s emphasized its commitment to ethical conduct and stated that the ongoing investigation has not implicated any other employees within the company. CEO Tony Spring assured stakeholders that the organization is focused on customer service and executing a successful holiday season strategy while working to address the situation promptly and appropriately.
In an effort to navigate the changing retail landscape, Macy’s has been implementing a turnaround plan, including the closure of 150 stores nationwide to refocus on luxury sales. The company plans to retain 350 Macy’s locations, as well as Bloomingdale’s and Bluemercury beauty and skincare stores, which have shown strong performance within Macy’s portfolio.
As the investigation continues and Macy’s works towards resolving the issue, investors and customers alike will be watching closely to see how the company addresses this financial challenge and moves forward in its efforts to adapt to evolving consumer preferences in the retail industry.
