Macy’s says single employee was responsible for hiding up to $154m in expenses
Macy’s recently made a shocking revelation that a single employee was behind hiding up to $154 million in expenses over nearly three years. This unexpected discovery led the largest department store chain in the US to delay the release of its quarterly earnings report as they dug deeper into the issue.
The company, which also owns Bloomingdale’s and Bluemercury, uncovered enough internal accounting irregularities to warrant an independent forensic accounting investigation. As a result, the full earnings report, originally scheduled for release on Tuesday, will now be out on December 11th.
Macy’s CEO, Tony Spring, emphasized the importance of ethical conduct within the company, stating that they are committed to resolving this matter promptly while maintaining a focus on customer service and their holiday season strategy.
The investigation revealed that an individual responsible for small package delivery expense accounting intentionally manipulated accounting entries between late 2021 and November 2024, concealing a substantial amount of expenses totaling between $132 million to $154 million during a period when Macy’s had $4.36 billion in delivery expenses.
Fortunately, Macy’s confirmed that the individual in question is no longer with the company, and it seems that no other employees were involved in this wrongdoing. However, the motive behind hiding these expenses remains unclear.
It’s worth noting that Macy’s has experienced some financial challenges in recent years, with a decline in quarterly sales compared to the previous year. While the main Macy’s stores saw a decrease in sales, Bloomingdale’s and Bluemercury reported more positive results, indicating some areas of growth for the company.
In response to these challenges, Macy’s announced plans to close 150 stores over the next three years, ultimately aiming to operate 350 stores, which is nearly half of its pre-pandemic count. These strategic moves reflect Macy’s efforts to adapt to changing consumer behaviors and enhance overall performance.
Overall, Macy’s is navigating through a challenging period marked by financial discrepancies, but their commitment to transparency and strategic decision-making bodes well for the company’s future.
