According to Macy’s, a former employee hid shipping costs of up to $154 million over almost three years.
Ahead of its third-quarter earnings release, the department store operator announced Monday morning that the individual who allegedly concealed the money was no longer employed by the company. A request for comment was not immediately answered by the corporation, whose statement on the subject did not specify when the employee departed the position.
According to Macy’s, the problem was found during the preparation of its financial report for the three-month period that ended on November 2. It was supposed to release its findings before the opening of the U.S. stock markets on Tuesday, but it has postponed doing so until December 11 in order to give an independent probe time to complete.
In order to conceal millions of dollars from the fourth quarter of 2021 to the most current quarter, the employee, who was in charge of accounting for small package delivery expenditures, “intentionally made erroneous accounting accrual entries,” according to the business. According to Macy’s, its delivery costs came to almost $4.36 billion over that time.
According to the firm, no other Macy’s employees have been identified by the independent review.
“We encourage a culture of moral behavior at Macy’s, Inc. In a statement released Monday morning, CEO Tony Spring stated, “Our colleagues throughout the company are focused on serving our customers and executing our strategy for a successful holiday season, even as we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately.”
For Macy’s, which is inextricably linked to the holiday season because to the movie “Miracle on 34th Street” and the Macy’s Thanksgiving Day Parade, the announcement comes at a challenging moment.It is on course to close roughly 150, or almost a third, of its eponymous stores as a result of its declining sales.
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