An accounting employee for Macy’s intentionally hid between $132 million and $154 million in delivery expenses over several years, delaying the company’s third-quarter results.
The person, who was specifically responsible for small-package delivery expense accounting, is no longer employed by the company. It is unknown what the person’s motivations were for hiding the expenses.
Macy’s will hold its annual Thanksgiving Day parade this week and its Black Friday promotions.
“At Macy’s, Inc., we promote a culture of ethical conduct,” CEO Tony Spring said in a statement Monday morning. “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.”
The employee hid the money between the fourth quarter of 2021 through the most recent period. A Macy’s spokesperson said the company has not identified involvement from any other employees.
Accounting is a withering profession. Fewer students enroll in degree programs in the area, and other companies, such as grain trading company Archer-Daniels-Midland Co. and Deutsche Bank, have faced accounting errors in recent years. There is a nationwide accounting shortage due to the lack of student enrollment in the profession.
Macy’s sales have been lacking for the past few years, with executives saying that customers have been more value-conscious and have been browsing aisles for longer. Sales fell 2.4% to $4.74 billion in the quarter that ended Nov. 2, according to the company, more than the $4.72 billion expected by analysts polled by FactSet.
Other luxury brands, such as Bloomingdale’s and Bluemercury, reported similar growth.
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While there has been expected growth in fragrances, dresses, and active apparel sales, sales have fallen in the company’s digital channels and in cold-weather categories.
Macy’s dropped 3% in trading as of 11 a.m. Monday.