Macy's Delays Earnings After Accounting Scandal

Macy's has delayed its third-quarter earnings report after discovering that a rogue employee hid between $132 million and $154 million in delivery expenses from the fourth quarter of 2021 through November 2024. The employee, responsible for small package delivery expense accounting, acted alone and is no longer with the company, with the discrepancy representing about 3-3.5% of Macy's $4.36 billion in delivery expenses during that period. Despite this setback, Macy's preliminary results showed a 2.4% decrease in third-quarter sales, with some positive trends in store sales and asset sales. The company is conducting an independent investigation and expects to release full results by December 11. CEO Tony Spring emphasized the company's focus on ethical conduct and a successful holiday season amid these challenges.