Macy’s has accused an employee of hiding up to $154 million of expenses.
The business is delaying the release of its full quarterly results after finding out about the alleged activity, the Associated Press (AP) reported on Monday.
The article continued:
The retailer said Monday that it identified an issue related to delivery expenses in one of its accrual accounts earlier this month. An independent investigation and forensic analysis found that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide roughly $132 million to $154 million of expenses from the fourth quarter of 2021 through the fiscal quarter ended November 2.
The company recognized about $4.36 billion of delivery expenses during the same time period.
The AP article also said “Macy’s said is it delaying reporting its third-quarter earnings results to complete an independent investigation. It anticipates reporting its full third-quarter financial results by Dec. 11.”
CNBC Television reported the employee is no longer working for the company, and the outlet noted that Macy’s said its third quarter net sales had dipped 2.4 percent.
According to the New York Times, “The company’s overall sales were dragged down by weak sales at Macy’s stores and its digital business.”
“And comparable sales rose at both Bloomingdale’s and Bluemercury, the company’s luxury brands. Those results are early signs that Macy’s latest strategy of investing in these parts of the business may be working,” the report said.
In February, Macy’s said it planned to close down 150 of its department stores across the nation to reorganize and refocus its business, per Breitbart News.
“In the coming three years, the company’s leadership plans to build out 15 Bloomingdale’s locations and 30 Bluemercury stores and remodel 30 Bluemercury locations,” the report said, noting the news came not long after Macy’s said it was going to cut 2,350 jobs and close five stores.