Macy’s son According to Monday, a worker in charge of accounting for minor package delivery hid costs totaling 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.
The business said that the worker, who was in charge of accounting for small package delivery costs, “intentionally made erroneous accounting accrual entries” in order to conceal between $132 million and $154 million from the most recent quarter to the fourth quarter of 2021. 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.”
Regarding the purported scam, Macy’s declined to provide more comments.
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.
Due to the company’s poor performance over the last ten years, its sales have plummeted. As part of a reorganization effort to concentrate on luxury sales, the retail giant announced in February that it will close 150 locations around the country.
In addition to Bloomingdale’s and Bluemercury beauty and skin care stores, which the firm claims have outperformed the rest of the Macy’s portfolio, 350 Macy’s sites will remain after the transition.
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