Macy's says worker hid more than $130m in costs

Published On Nov 25, 2024, 10:01 AM

Macy's has revealed that an employee concealed over $130 million in expenses related to small package deliveries over approximately three years. This issue has led to a delay in the release of the company's latest financial accounts. While Macy's asserts that the impact of the concealed costs is limited and that it will not affect its payments to suppliers, the company is facing challenges, including a recent 2.4% decline in sales. The affected employee is no longer with the company, and a final report on the matter is expected on December 11.

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The uncovering of significant hidden expenses may have negative implications for investor confidence in Macy's financial management. As the largest department store chain in the U.S., any suggestion of financial misconduct could lead to scrutiny and affect sales during the crucial holiday season. Additionally, a decline in sales prior to the issue may indicate broader struggles for the company in a competitive retail environment.

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