Worker Hid $154M In Expenses, Macy’s Says, Delaying Q3 Earnings Report | New York City …
Macy’s recently announced that they had encountered an unexpected setback in their third-quarter sales report. The company revealed that an employee had intentionally hidden up to $154 million in expenses over the course of several years. This discovery has led Macy’s to delay the release of its quarterly results while they conduct a thorough investigation.
According to Macy’s, the issue stemmed from delivery expenses in one of their accrual accounts. An independent investigation found that a single employee responsible for small package delivery expense accounting had made false entries to conceal millions of dollars in expenses. While this is certainly concerning, Macy’s assured the public that there was no impact on their cash management or vendor payments as a result of these actions.
It’s worth noting that the employee responsible for this misconduct is no longer with the company, and Macy’s confirmed that no other workers were involved. The company is working diligently to complete their investigation and has set a target date of December 11th to release their full financial results for the third quarter.
In the meantime, Macy’s did provide some preliminary results for the third quarter. Net sales dipped by 2.4% to $4.74 billion, slightly exceeding analysts’ estimates. Comparable sales were down 2.4%, excluding licensed businesses like cosmetics. Macy’s comparable sales dropped by 3%, while Bloomingdale’s saw a 1% increase, and Bluemercury enjoyed a 3.3% rise in comparable sales.
Despite this setback, Macy’s remains focused on providing excellent customer service and executing their holiday season strategy. The company’s Chairman and CEO, Tony Spring, emphasized their commitment to ethical conduct and ensuring that this issue is handled appropriately.
Overall, Macy’s is working hard to address this issue and move forward. While the news may be disappointing, the company remains dedicated to serving its customers and adapting to ensure a successful holiday season.
