Macy’s has postponed releasing its third-quarter earnings after uncovering an accounting scandal involving a single employee.
The retail giant revealed that the worker intentionally concealed $132 million to $154 million in expenses over multiple years, tied to small package delivery costs, reported ABC News. This issue came to light during an internal review earlier this month, prompting an independent investigation.
The company clarified that the accounting inaccuracies, which spanned from late 2021 to the quarter ending November 2, 2024, did not affect Macy’s cash management or vendor payments. During that time, Macy’s recognized $4.36 billion in delivery expenses.
The individual behind the misconduct is no longer with the company, and no other employees were implicated.
Originally scheduled to report earnings on Tuesday, Macy’s now plans to release its results by December 11. CEO Tony Spring assured stakeholders that the company remains committed to ethical conduct and its strategic goals despite the setback.
“Our colleagues are focused on serving customers and ensuring a successful holiday season,” Spring stated.
Preliminary results indicate a 2.4% drop in net sales for the quarter, totaling $4.74 billion, slightly surpassing analyst expectations of $4.72 billion. Macy’s comparable sales fell 3%, while Bloomingdale’s and Bluemercury showed positive growth of 1% and 3.3%, respectively.
The retailer’s First 50 stores, a set of renovated locations emphasizing enhanced customer service, delivered a 1.9% gain in comparable sales. These results highlight the importance of targeted investments in improving customer experience.
Macy’s stock fell nearly 3% in early Monday trading, reflecting investor concerns over the scandal and ongoing challenges in the retail sector. The company hopes to regain momentum as it addresses this setback and gears up for the holiday shopping season.
This article was written with the assistance of artificial intelligence.