Macy’s announced unexpectedly strong sales for the third quarter and mentioned that it would postpone the release of its complete quarterly results after discovering that an employee has deliberately concealed around $154 million in expenses over many years.
The department store chain that also includes Bluemercury and Bloomingdale Cosmetics was supposed to announce its results on a quarter basis on Tuesday. The retailer also revealed that it detected some issues regarding delivery costs earlier this month, in one of its accrual accounts.
An independent inquiry and forensic analysis revealed that a single employee is responsible for accounting for small package delivery expenses and has intentionally made incorrect accounting entries to conceal approximately $132 million to $154 million in expenses. These expenses are from the fourth quarter of 2021 through the fiscal quarter.
The company recorded around $4.36 billion in delivery expenses in the same time slot. Also, Macy’s asserted that there is no specific evidence that the incorrect accounting entries affected its cash management operations or vendor payments.
The company has noted that the individual responsible for the misconduct is no longer employed there and that the investigation found no involvement from any other staff member. Macy’s stated that it is postponing the announcement of its third-quarter earnings results in order to financial results by December 11.
Chairman and CEO Tony Spring has stated that in Macy’s Inc., the culture of ethical behaviour is upheld, as they strive to complete the investigation promptly and manage the issue appropriately. The employees of the company remain dedicated to serving the customers and implementing the strategy for a successful holiday season.
The company has also shared some preliminary figures for its third quarter that indicated that nest sales dropped 2.4% to $7.74 billion slightly exceeding the average analyst expectation of $4.72 billion.
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