Macy’s is gearing up for its biggest season of the year – holiday season. And with just days before its annual Thanksgiving Day Parade, it was revealed that a former employee of the department store chain withheld millions of dollars worth of expenses while working for Macy’s. As a result, the company delayed its earnings report for Q3 until December 11 “to allow for completion of the independent investigation.”
According to CNN, Macy’s reported that the former staff member “intentionally made erroneous accounting accrual entries” while hiding small package delivery expenses.
Learn more about the financial scandal, below.
Macy’s reported stronger-than-expected sales for the third quarter and said it’s delaying the release of its full quarterly results after it discovered an employee intentionally hid up to $154 million of expenses over several years.
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What Happened at Macy’s?
Macy’s revealed that its former employee — whose name has not been publicly disclosed — was responsible for countless accounting mistakes. As a result, the company had to delay its quarterly earnings report.
How Did the Macy’s Employee Hide the Expenses?
The unnamed ex-employee “intentionally” put incorrect accounting entries while hiding millions of dollars worth of small package deliveries, Macy’s announced. This took place over the course of three years – since at least 2021.
“At Macy’s, Inc., we promote a culture of ethical conduct,” Macy’s CEO Tony Spring explained in a statement. “While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”
How Much Money Did the Macy’s Employee Steal?
The unidentified employee hid around $154 million worth of expenses from Macy’s, according to CNN. The total number of hidden expenses was a small amount compared to the company’s total value in deliveries: $4 billion.
Macy’s further noted that there was “no indication that the erroneous accounting accrual entries had any impact on the company’s cash management activities or vendor payments.”
