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. Beyond the announcement, the corporation declined to comment, as their statement on the topic did not specify the date of the employee’s departure.
As investors search for hints about how consumers are shopping for the holidays, the news comes at a challenging moment for Macy’s, which is inextricably linked to the Christmas season through the movie Miracle on 34th Street and the Macy’s Thanksgiving Day Parade.Since the corporation has underperformed for the last ten years, Macy’s revenues have plummeted.
The corporation was supposed to release its full results 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 inquiry time to complete.
According to Macy’s, the problem was found during the preparation of its financial report for the quarter that ended on November 2. It did publish initial results for the time frame, indicating a 2.4% year-over-year drop in total net sales.
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.”
Amidst wider changes in the retail sector, especially as consumers make more purchases online, Macy’s is making an effort to turn things around. 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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