ICYMI: Macy’s Delays Earnings Report After Employee Hid Up To $154 Million In Expenses
Macy’s earnings delay stems from a bombshell investigation revealing $154 million in hidden expenses, shaking up the retailer’s financial picture just before the holidays. 🌐 #News #NewYorkNY #NewYork #Business
NEW YORK, NY – Macy’s announced that it would be delaying the release of its full third-quarter earnings due to an ongoing investigation into a former employee who allegedly hid up to $154 million in delivery expenses over the past few years. The company discovered the issue while preparing its preliminary earnings report, which covered the three-month period ending November 2.
Investigation Uncovers $154 Million in Hidden Expenses
The retailer revealed that the employee responsible for small package delivery expense accounting made intentional errors in order to conceal $132 to $154 million in cumulative delivery expenses. This accounting discrepancy dates back to the fourth quarter of 2021 and continues through the fiscal quarter ending November 2, 2024. During this period, Macy’s reported approximately $4.36 billion in delivery expenses.
Macy’s said it became aware of the issue while preparing its third-quarter earnings report and launched an independent investigation to examine the extent of the problem. The forensic analysis confirmed that the employee altered accrual entries to intentionally hide these significant expenses.
No Impact on Cash Management or Vendor Payments
Despite the significant financial misreporting, Macy’s emphasized that there was “no indication” that the erroneous accounting entries had any effect on the company’s cash management or vendor payments. This clarification aims to reassure investors and stakeholders that the company’s day-to-day operations, including financial transactions with vendors, were not affected by the actions of the former employee.
Macy’s also confirmed that the individual responsible is no longer employed by the company. In a statement, Macy’s Chairman and CEO Tony Spring said, “At Macy’s, Inc., we promote a culture of ethical conduct.”
Expected Financial Report and Holiday Focus
The company has indicated that it will complete its investigation and release the full third-quarter financial results, along with an earnings conference call. Macy’s remains focused on its ongoing operations and the upcoming holiday season.
Spring added, “While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”
The delay in the earnings report comes as Macy’s works to address this serious issue while continuing to prioritize customer service and its financial strategy.
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