Macy’s Delays Earnings As Accounting Scandal Spurs $154M in Missing Expenses
One employee’s creative accounting has thrown Macy’s holiday season into disarray. The retail giant discovered that a worker concealed up to $154M in delivery expenses over nearly three years, forcing the company to delay its third-quarter earnings report. The revelation comes at a particularly challenging time for the department store chain, which has already seen its shares tumble 19% this year.
- The hidden expenses represent a portion of Macy’s $4.36B in total delivery costs from Q4 2021 through Q3 2024 but were significant enough to prompt an independent forensic investigation.
- Preliminary results show Q3 sales dropped 2.4% to $4.74B, with comparable sales declining 1.3% across owned and licensed businesses.
Fiscal faux pas: Despite the drama, there are bright spots in Macy’s performance. The company’s luxury brands continue to shine, with Bloomingdale’s posting a 3.2% comparable sales increase and Bluemercury seeing its 15th straight quarter of growth with a 3.3% bump. CEO Tony Spring noted that November sales are trending ahead of Q3 levels across all three brands, suggesting a potentially stronger holiday season ahead — assuming no more accounting surprises come to light.
