Macy's delays earnings to complete investigation into a worker hiding over $130 million in expenses
AP Photo/David Zalubowski
- Macy's has delayed Q3 earnings as it investigates over $130 million in hidden expenses.
- Macy's said a single employee was responsible for "erroneous accounting accrual entries."
- The employee is no longer working at Macy's, the company said.
Macy's just delayed its third-quarter earnings, saying it is undertaking a forensic investigation into a single employee's concealment of more than $130 million in expenses.
The department store chain said Monday that the employee — who was responsible for small package delivery expense accounting and no longer works at the company — intentionally hid between $132 and $154 million in expenses over the course of three years.
"There is no indication that the erroneous accounting accrual entries had any impact on the company's cash management activities or vendor payments. The individual who engaged in this conduct is no longer employed by the company," the company said.
Macy's stock price fell as much as 4% in premarket trading on Monday.
The company was due to report its earnings on Tuesday; it said the release is now planned for December 11.
"At Macy's, we promote a culture of ethical conduct. 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," Tony Spring, CEO of the chain, said in a statement accompanying the news.
A spokesperson for Macy's did not immediately respond to a request for further comment from Business Insider.