Macy’s Discovers Employee Hid Millions in Delivery Expenses

Published On Nov 25, 2024, 9:40 AM

Macy's has reported a major accounting error, misstating delivery expenses by as much as $154 million over the last few years. This has led to a delay in releasing their third-quarter earnings report, which showed a 2.4% drop in sales, falling to $4.74 billion, below analysts' expectations. However, there are some positive indicators, as comparable sales at specific stores grew by 1.9%, indicating potential success from their strategy focused on luxury brands. The delay in providing full-year guidance adds uncertainty in the retail market, especially amid cautious consumer spending patterns heading into the holiday shopping season.

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Macy's has faced a difficult period with accounting discrepancies resulting in decreased investor confidence. The delay in their earnings report can lead to further concerns regarding their financial stability. Despite some positive sales growth in selective areas, overall sales decline and a lack of clear guidance may result in short-term pressure on their stock.

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

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Macy's on Monday delayed its Q3 earnings release as it conducts an internal investigation into an employee hiding hundred of millions of dollars of expenses.

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