Macy’s delays Q3 earnings after uncovering $154M hidden expenses by former employee

Macy’s has delayed releasing its third-quarter earnings after discovering that a former employee concealed $132 million to $154 million in expenses over several years.

The retailer identified irregularities in delivery expense accounting earlier this month, prompting an independent investigation. Preliminary findings revealed that the employee intentionally made erroneous accounting entries from Q4 2021 through Q3 2024.

The department store giant stated the hidden expenses did not impact cash management or vendor payments. The individual responsible is no longer with the company, and no other employees were implicated. Macy’s now expects to release its full Q3 results by December 11.

Despite the issue, Macy’s reported a 2.4% drop in net sales to $4.74 billion, slightly surpassing analyst expectations of $4.72 billion. While Macy’s comparable sales fell by 3%, Bloomingdale’s and Bluemercury saw gains of 1% and 3.3%, respectively. CEO Tony Spring emphasized Macy’s commitment to ethical practices and its focus on ensuring a successful holiday season.