• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Macy’s confirms rogue employee hid $151 million in expenses over three years
Editor's Pick

Macy’s confirms rogue employee hid $151 million in expenses over three years

by December 11, 2024
by December 11, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

A rogue employee was responsible for hiding $151 million in delivery expenses over the course of nearly three years, Macy’s said Wednesday.

In a statement accompanying its quarterly earnings results, the department store chain said a single employee responsible for small package delivery expense accounting had intentionally created erroneous cost entries from the fourth quarter of 2021 through the third quarter of 2024. The employee also falsified underlying documents, according to a Macy’s regulatory filing Wednesday morning.

Macy’s Chairman and CEO Tony Spring said on the company’s earnings call that its investigation found the employee “acted alone and did not pursue these acts for personal gain.”

The employee told investigators that a mistake was initially made in accounting for small parcel delivery expenses, and then the person made intentional errors to hide the mistake, according to sources familiar with the investigation.

In an announcement last month that first revealed the situation, Macy’s estimated the erroneous entries totaled between $132 million and $154 million. The revelation led Macy’s to delay reporting its quarterly results for two weeks and caused its shares to tumble.

“We’ve concluded our investigation and are strengthening our existing controls and implementing additional changes designed to prevent this from happening again and demonstrate our strong commitment to corporate governance,” Spring said in a statement. “Our focus is on ensuring that ethical conduct and integrity are upheld across the entire organization.”

Macy’s did not disclose any additional information about how the employee’s actions were discovered and reiterated that the person is ‘no longer with the company.’

Macy’s said the investigation found that its internal accounting controls were vulnerable to employees sidestepping them. The company said it is revising those processes.

After consulting with its longtime independent accounting firm, KPMG, Macy’s also said that a report released in February on its internal controls ‘should no longer be relied upon’ — nor should KPMG’s previous endorsement of Macy’s internal controls.

In premarket trading Wednesday, Macy’s shares were down as much as 11% as it also reported earnings that missed analysts’ estimates.

Although $151 million is small relative to the $4.36 billion Macy’s said it had tallied in overall delivery expenses during the period in question, it is more than the entire company’s most recent fiscal year net profit of $105 million.

The discovery also comes as Macy’s attempts a turnaround amid broad shifts in consumer habits, with the chain having announced in February a plan to close 150 stores over several years. Earlier this week, an outside investor group said it had taken a significant stake in Macy’s seeking to shake up the retailer’s operations, including monetizing its real estate holdings.

This post appeared first on NBC NEWS
You Might Also Like
  • Caroline Ellison, star witness in Bankman-Fried trial, recounts living in ‘a constant state of dread’
  • Why Trump’s iPhone tariff threat might not be enough to bring production to the U.S.
  • Ascension Health, largest Catholic hospital chain in the U.S., hit by cyberattack, disrupting patient care
  • Sam Bankman-Fried found guilty on all counts at fraud trial over crypto exchange
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Judge blocks Albertsons-Kroger $25 billion supermarket merger
next post
Albertsons sues Kroger after judge rules against grocery merger

You may also like

Lululemon founder slams company’s ‘whole diversity and inclusion thing’

January 6, 2024

Macy’s turnaround hinges on revamping some stores and closing others....

March 7, 2025

Sam Bankman-Fried found guilty on all counts at fraud trial...

November 4, 2023

As Trump eyes more tariffs, South Korea remains safe haven...

February 14, 2025

Trump Media sues Brazil Supreme Court judge who battled Elon...

February 20, 2025

Adidas to cut up to 500 jobs after posting better-than-expected...

January 27, 2025

How the New York Mets can justify paying one player...

December 11, 2024

Retiring Corvette ‘godfather’ on EVs, spinoff and a performance SUV

August 6, 2024

The new class war: A wealth gap between millennials

April 30, 2024

FBI warns against using public phone charging stations

April 11, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Musk loses more than $100B as...

    February 27, 2025

    The number of connected EV charging...

    January 24, 2023

    As Lionel Messi descends, Miami economy...

    July 26, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here