Macy’s announced on November 26, 2024, that it discovered an employee had intentionally concealed between $132 million and $154 million in expenses over several years. The department store chain, which includes Bloomingdale’s and Bluemercury, is delaying the release of its full third-quarter financial results as it investigates the matter further.
- Macy's reports stronger-than-expected third-quarter sales.
- Employee hid $154 million in expenses.
- Independent investigation underway; no other involvement found.
- Third-quarter earnings report delayed until December 11.
- Comparable sales down 2.4%, Bloomingdale's up 1%.
- Shares fell 3.3% in afternoon trading.
The issue arose from erroneous accounting entries related to delivery expenses, identified earlier in November. Macy’s reported net sales of $4.74 billion for the third quarter, slightly exceeding analyst expectations of $4.72 billion. Comparable sales across Macy’s stores fell by 2.4%, while Bloomingdale’s saw a 1% increase.
Key details include:
- Delivery expenses recognized by Macy’s during the same period totaled approximately $4.36 billion.
- The employee responsible for the misconduct is no longer with the company.
- No other employees were found to be involved in the fraudulent activity.
While the investigation continues, Macy’s reassured stakeholders that the accounting issues did not affect cash management or vendor payments. The company plans to finalize its independent investigation and provide complete third-quarter results by December 11, 2024. Shares of Macy’s fell 3.3% to $15.77 following the announcement.
This incident highlights the importance of ethical conduct within corporations. Macy’s leadership is committed to addressing the situation promptly while maintaining focus on customer service and strategic operations for the upcoming holiday season.
