American department store chain Macy’s revealed that a single employee was responsible for significant accounting irregularities, which managed to conceal over $150 million in expenses.
The scale of these discrepancies was so vast that the company was forced to delay its quarterly earnings report, originally scheduled for release tomorrow, Tuesday.
The company admitted that it recently discovered the employee had intentionally hidden up to $154 million in expenses over the past three years. This finding prompted an independent accounting investigation.
According to Macy’s, the employee, who is no longer with the company, “intentionally made incorrect accrual accounting entries” to conceal the costs associated with small package deliveries, a sector under their supervision.
Macy’s did not disclose the reasons for the employee’s actions but clarified that they acted alone, CNN reported.
The concealed expenses represent a small fraction of the $4.36 billion the company has spent on deliveries from the fourth quarter of 2021 through 2024.
The company assures that the discovery will not cause major issues. However, Macy’s shares have already dropped nearly 20% this year.
Macy’s is moving forward with plans to close hundreds of stores as part of a recovery strategy.
