Macy’s Inc. announced on Nov. 25 that it is delaying the release of its third-quarter earnings after uncovering that an employee intentionally hid between $132 million and $154 million in delivery expenses over several quarters.
The discovery was made during the preparation of the company’s unaudited financial statements for the fiscal quarter ended Nov. 2.
An independent investigation revealed that a single employee made erroneous accounting accrual entries to conceal the expenses from the fourth quarter of 2021 through the most recent fiscal quarter, the company said in an investor statement.
The employee responsible for the misconduct is no longer with the company, it said, and the investigation did not identify involvement by any other employee.
Macy’s did not respond to a request for comment on whether the employee’s conduct had been referred to law enforcement.
“There is no indication that the erroneous accounting accrual entries had any impact on the company’s cash management activities or vendor payments,” the statement said.
The company emphasized that the hidden expenses represented a small portion of the approximately $4.36 billion in delivery expenses recognized during the same period.
Macy’s also reported weaker-than-expected preliminary sales for the fiscal third quarter and said it’s delaying the release of its quarterly earnings to complete an investigation into the matter. The retailer was originally scheduled to report its quarterly results on Nov. 26.
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