Department store chain Macy’s announced on Monday that it will delay its third-quarter earnings report, which was set to be released on Tuesday. The company made the decision after discovering that one employee hid up to $154 million in delivery expenses between 2021 and 2024.
Macy’s launched an investigation earlier this month after noticing “an issue related to delivery expenses in one of its accrual accounts.” The investigation showed that a single employee, who was responsible for accounting tasks related to small package delivery, “intentionally” made accounting errors that resulted in $132 million to $154 million of expenses not being visible in reports.
According to Macy’s, the individual responsible for the accounting errors is no longer employed by the company.
“There is no indication that the erroneous accounting accrual entries had any impact on the company’s cash management activities or vendor payments,” Macy’s stated. “The individual who engaged in this conduct is no longer employed by the company. The investigation has not identified involvement by any other employee.”
Macy’s will now share its Q3 financial report in December when it will also provide guidance for Q4 and the full 2024 fiscal year. The company did provide preliminary results that showed its revenue fell by 2.4% compared to the same period last year, coming at $4.74 billion. The analysts expected sales of $4.77 billion.
Macy’s stock dropped by 2.21% on Monday, closing at $15.94 per share and being 19.33% down year-to-date.