Macy’s Inc. has revealed that a former employee allegedly concealed between $132 million and $154 million in delivery expenses over a period of nearly three years. The company made this announcement on Monday as part of a preliminary report linked to its third-quarter earnings.
The issue was detected during the preparation of Macy’s financial statements, prompting an independent investigation. The employee, who was responsible for accounting small package delivery expenses, is said to have created false accounting entries to obscure significant costs from the fourth quarter of 2021 through the fiscal quarter ending November 2, 2024. Despite recognizing $4.36 billion in delivery expenses during this timeframe, Macy’s stated that there is no evidence suggesting that these misreported entries affected the company’s cash management or payments to suppliers.
The investigation has concluded that this was an isolated incident involving only the one employee, who is no longer with the company. Macy’s has decided to postpone the release of its third-quarter earnings to ensure a thorough investigation is completed. The company anticipates to provide a comprehensive financial report and outlook for the fourth quarter by December 11.
Macy’s CEO, Tony Spring, emphasized the company’s commitment to ethical conduct, assuring stakeholders that they are focused on serving customers and succeeding in the upcoming holiday season, despite the challenges presented by this incident.
This situation underscores the importance of transparency and accountability within corporate structures, and it is hopeful that the measures Macy’s is implementing will bolster their systems against future discrepancies, allowing them to regain full operational confidence. As they navigate this challenge, the resilience and dedication of their remaining employees shine through, particularly as the holiday season approaches.