Department store retailer Macy’s, Inc., (NYSE: M) stated on Monday that an employee hid up to $154 million through intentional accounting errors since 2021.
In its preliminary third quarter 2024 results, the company reported it recently identified an issue related to delivery expenses on one of its accrual accounts. After starting an independent investigation and forensic analysis, the company identified one employee who was responsible for small package delivery expense accounting accrual entries hid around $132 to $154 million of cumulative delivery expenses.
These expenses were hidden from the fourth quarter of 2021 through the fiscal quarter that ended on Nov. 2, 2024. Macy’s stated it recognized approximately $4.36 billion of delivery expenses during that time period.
“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 in its report. “The individual who engaged in this conduct is no longer employed by the company. The investigation has not identified involvement by any other employee.”
The company is delaying its earnings release and conference call for Q3 2024 to complete its independent investigation on the matter. Macy’s expects to report its full quarterly financial results and hold its earnings conference call by Dec. 11.
Macy’s CEO Tony Spring said in the report that Macy’s promotes a culture of ethical conduct.
“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,” Spring said.
FreightWaves reached out to Macy’s for comment.
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