Macy’s has disclosed that a former employee allegedly concealed between $132 million and $154 million in delivery expenses over nearly three years. The retailer announced this issue during a preliminary report related to its third-quarter earnings, which prompted the company to initiate an independent investigation.
The employee, responsible for accounting small package delivery expenses, reportedly made intentional errors in accounting entries to hide these substantial costs from the fourth quarter of 2021 through to the fiscal quarter ending on November 2, 2024. During this period, the company recorded approximately $4.36 billion in delivery expenses. Fortunately, Macy’s stated that there is no evidence indicating that these inaccurate accounting practices impacted its cash management or vendor payments. The individual in question is no longer employed by Macy’s, and the investigation confirmed that no other staff members were implicated.
Macy’s uncovered the discrepancy while preparing financial statements for the third quarter, which concluded on November 2. Subsequently, the release of these results has been postponed to ensure the completion of the investigation. A comprehensive report concerning both the financial results of the quarter and the company’s outlook for the upcoming fourth quarter is anticipated by December 11.
CEO Tony Spring emphasized Macy’s commitment to ethical practices, stating that the company is dedicated to resolving this matter promptly while maintaining focus on customer service and strategies for a successful holiday season.
This situation underscores the importance of ethical conduct in corporate environments, and Macy’s prompt response to the issue illustrates their commitment to accountability. As the retailer navigates through this challenge, the upcoming holiday season may offer opportunities for renewed customer engagement and business growth.
Summary: A former Macy’s employee allegedly concealed up to $154 million in delivery expenses for nearly three years, prompting an independent investigation. The company has stated that no other employees were involved and has delayed its third-quarter earnings release to complete the inquiry. Macy’s remains focused on ethical practices and customer service during this time.