Macy's has delayed its quarterly earnings report due to accounting irregularities caused by a single former employee. Over nearly three years, the employee allegedly concealed up to $154 million in small package delivery expenses by making erroneous accounting entries. Macy's has conducted a forensic investigation, confirming that no other employees were involved and that the irregularities did not impact cash management or vendor payments.
Preliminary results reveal a 2.4% drop in sales, driven by weak digital performance and lower demand for cold-weather items. While Macy's core stores underperformed, higher-end divisions like Bloomingdale's and Bluemercury saw modest growth. Analysts raised concerns about the company's auditors, adding to investor unease. Macy's shares have dropped nearly 20% this year. The company remains committed to its turnaround plan, including store closures and focusing on its long-term strategy.
