Department store chain Macy’s, Inc. (NYSE: M) said Monday that an employee has hidden up to $154 million since 2021 through deliberate accounting errors.
In its preliminary Q3 2024 results, the company reported that it had recently identified an issue related to delivery fees on one of its transaction accounts. After launching an independent investigation and forensic analysis, the company identified one employee responsible for the costs of small package delivery.
These costs remained hidden from the fourth quarter of 2021 through the fiscal quarter ending November 2, 2024. Macy’s stated that it recognized approximately $4.36 billion in delivery costs during that period.
“There is no evidence that the accounting errors had any impact on the company’s cash management operations or vendor payments,” Macy’s said in its report. “The individual who engaged in this conduct is no longer employed by the company. The investigation revealed no involvement of any other employee.”
The company is postponing its earnings release and conference call for the third quarter of 2024 to complete its independent investigation into this matter. Macy’s expects to release its full quarterly financial results and hold its earnings conference call on December 11.
Macy’s CEO Tony Spring said in the report that Macy’s promotes a culture of ethical behavior.
“While we are working hard to complete the investigation as quickly as possible 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,” said Spring.
FreightWaves contacted Macy’s for comment.
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