The department store company Macy’s delayed its complete quarterly results release after finding out one of their employees “intentionally” hid approximately $154 million of expenses over a few years. On Tuesday, the company was scheduled to reveal its quarterly report. However, on Monday, it released preliminary findings, which included an issue associated with delivery expenses in an accrual account in early November.
Macy’s delays Q3 report after surprising revelation about an employee
Macy’s recently discovered a shocking truth about its one employee ahead of the full release of the company’s quarterly reports. The department store company has now postponed the release of the results. Macy’s revealed that they found a major issue with an account’s delivery expenses during the preparation of its financial statement. The retailer then went on to launch an investigation into the matter.
As reported by Fox Business, in a recent press release, Macy’s said it discovered “a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide approximately $132 [million] to $154 million of cumulative delivery expenses from the fourth quarter of 2021 through the fiscal quarter ended November 2, 2024.” In this time frame, the department store recorded nearly $4.36 billion in expenses for delivery.
Tony Spring, the CEO of Macy’s also gave a statement on the issue, per Fox Business. Spring said, “At Macy’s, Inc., we promote a culture of ethical conduct.” The CEO continued, “While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately,” adding, “our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”
The employee who hid the massive expenses is no longer a part of Macy’s. The investigation did not find the involvement of any other worker in the matter. The retailer explained it delayed reporting its Q3 earnings reports to finish a completely independent investigation. By December 11, the company expects to report its financial results for the third quarter.
