Macy's delays Q3 earnings report, says employee hid up to $154 million in expenses

Published On Nov 25, 2024, 8:03 AM

Macy's has delayed its Q3 earnings report due to a significant issue: an employee was found to have concealed between $132 million and $154 million in expenses related to small package delivery accounting. This discrepancy occurred over multiple quarters but did not affect cash management or vendor payments. Although Macy's reported net sales slightly below expectations at $4.74 billion, same-store sales fell by 1.3%. The company's stock was down about 3% in premarket trading, continuing a downward trend this year.

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The internal investigation and the considerable financial discrepancy may lead to further scrutiny and lack of investor confidence, especially following a year with significant drops in share value. The company's upcoming plans to close underperforming stores is a strategy that may help stabilize sales in the longer term, but the current situation suggests cautious sentiment from investors in the short term.

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