Macy’s has announced a significant delay in its Q3 earnings report due to the discovery that an employee concealed between $132 million and $154 million in expenses over several years. This issue, which pertains to delivery expenses recorded in an accrual account, was initially expected to be reported on November 2, 2024 [8334f417]. An independent investigation confirmed that no other employees were involved in this misconduct, highlighting the isolated nature of the incident [8334f417].
Preliminary results for Q3 indicate that Macy’s net sales reached $4.74 billion, reflecting a 2.4% decline compared to the previous year. Comparable sales also fell by 2.4%, with Macy’s stores experiencing a 3% drop, while Bloomingdale's and Bluemercury reported increases of 1% and 3.3%, respectively [8334f417]. Following the announcement, shares of Macy’s fell by 3.3%, closing at $15.77 [8334f417].
CEO Tony Spring emphasized the importance of ethical conduct within the company, stating that Macy’s is committed to maintaining transparency and integrity in its financial practices [8334f417]. The full Q3 results are now expected to be released by December 11, 2024, as the company works to address the implications of this financial misconduct [8334f417].
This incident underscores the challenges facing Macy’s as it navigates a competitive retail environment while ensuring accountability and trust among its stakeholders [8334f417].