Macy’s has announced a significant accounting fraud that could impact its financial performance. A former employee is suspected of concealing up to $154 million in delivery expenses over a three-year period.
The company discovered the fraudulent activity while preparing its third-quarter financial report. The employee responsible for accounting for small package delivery expenses intentionally made false entries to hide the millions of dollars in expenses.
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Macy’s has launched an independent investigation into the matter and has delayed the release of its full third-quarter earnings report until December 11th. The company has assured stakeholders that no other employees were involved in the fraud.
“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,” CEO Tony Spring said in a statement Monday morning.
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This revelation comes at a challenging time for Macy’s, which has been struggling with declining sales and store closures. The company is now facing additional financial pressure due to the accounting scandal.
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