Macy’s says employee hid up to $154 million in expenses, delaying Q3 earnings
FILE - Cars are parked in front of a Macy’s store at Hawthorn Mall in Vernon Hills, Ill., June 3, 2024. (AP Photo/Nam Y. Huh, File)
Macy’s reported weaker-than-expected sales for the third quarter and said it’s delaying the release of its full quarterly results after it discovered an employee intentionally hid up to $154 million of expenses over several years
The department store chain, which also operates Bloomingdale’s and Bluemercury cosmetics chain in addition to its namesakes stores, was expected to report quarterly results on Tuesday.
The retailer said Monday that it identified an issue related to delivery expenses in one of its accrual accounts earlier this month. An independent investigation and forensic analysis found that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide roughly $132 million to $154 million of expenses from the fourth quarter of 2021 through the fiscal quarter ended November 2.
Macy’s said that there’s no indication that the erroneous accounting accrual entries had any impact on its cash management activities or vendor payments.
