Macy’s has revealed that a former employee allegedly concealed up to $154 million in delivery costs over nearly three years, according to a statement released Monday morning. The department store giant disclosed the issue while preparing its financial results for the quarter ending November 2 and has since launched an independent investigation.
The company reported that the individual, who was responsible for managing the accounting of small package delivery expenses, “intentionally made erroneous accounting accrual entries” to obscure the missing funds. The actions, Macy’s stated, spanned from the fourth quarter of 2021 through the most recent quarter. During the overall period, the company’s delivery expenses totaled approximately $4.36 billion.
Macy’s did not specify when the former employee left the company or provide further details regarding their departure. However, it clarified that the ongoing investigation has not uncovered evidence implicating other employees in the scheme.
Originally scheduled to release its third-quarter results before U.S. markets opened on Tuesday, Macy’s has postponed the full disclosure until December 11 to allow time for the investigation to conclude.
In a statement, Macy’s CEO Tony Spring sought to reassure stakeholders: “At Macy’s, Inc., 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.”
