Worker Hid $154M In Expenses, Macy’s Says, Delaying Q3 Earnings Report

Macy’s recently announced that it uncovered a concerning issue involving a former employee who intentionally concealed up to $154 million in expenses over the past few years. This discovery has led to the delay of Macy’s third-quarter earnings report.

The investigation revealed that a single employee responsible for accounting small package delivery expenses made false entries to hide millions of dollars in costs. Despite this misconduct, Macy’s assured stakeholders that this incident did not affect the company’s cash management or vendor payments.

It’s important to note that the individual behind this fraudulent activity is no longer employed by Macy’s, and the investigation did not find any other employees involved in this scheme.

As Macy’s continues its independent investigation, the company aims to release its full third-quarter financial results by December 11. In the meantime, Macy’s shared some preliminary details from its third-quarter performance. The retail giant reported a 2.4% decrease in net sales to $4.74 billion, slightly exceeding analysts’ expectations.

Macy’s comparable sales, excluding licensed businesses, declined by 2.4%. However, Bloomingdale’s comparable sales saw a 1% increase, and Bluemercury’s comparable sales were up by 3.3%. Additionally, Macy’s First 50 stores, which have been renovated with a focus on customer service, experienced a 1.9% increase in comparable sales during the latest quarter.

Despite this setback, Macy’s Chairman and CEO, Tony Spring, emphasized the company’s commitment to ethical conduct and customer service. The company is dedicated to resolving this matter promptly while ensuring a successful holiday season for its customers.

As a result of this news, Macy’s stock price fell by approximately 3% in early morning trading on Monday. Stay tuned for more updates as Macy’s completes its investigation and releases its full financial results in the coming weeks.