Macy’s delays earnings report after discovering lone-wolf employee hid over $100 million in delivery expenses
Macy’s delayed formally reporting its full third-quarter results, saying it had discovered that “a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide” over $100 million in delivery expenses over a three-year period.
This issue was discovered during its preparation of this quarterly report, according to management, and the individual in question is no longer employed by the company.
In some respects, the numbers are small, amounting to only about 3% of the company’s delivery expenses during this period. On the other hand, the $132 to $154 million in cumulative hidden expenses is within the range of the total amount of profit the company generated in the second quarter.
Macy’s did provide some hard numbers on its operating performance for the third quarter. Same-store sales were down 1.3% year on year, a little better than analysts expected, while net sales of $4.742 billion were a touch underwhelming.
Revenue growth at Bloomingdale’s, Bluemercury, and the so-called “First 50” — flagship locations where Macy’s is testing out new sales tactics — did better than other locations.
Management plans to deliver its full quarterly results and host a conference call on the figures by December 11.
The stock, which surged 8.2% on Friday, was down modestly ahead of the open.
This issue was discovered during its preparation of this quarterly report, according to management, and the individual in question is no longer employed by the company.
In some respects, the numbers are small, amounting to only about 3% of the company’s delivery expenses during this period. On the other hand, the $132 to $154 million in cumulative hidden expenses is within the range of the total amount of profit the company generated in the second quarter.
Macy’s did provide some hard numbers on its operating performance for the third quarter. Same-store sales were down 1.3% year on year, a little better than analysts expected, while net sales of $4.742 billion were a touch underwhelming.
Revenue growth at Bloomingdale’s, Bluemercury, and the so-called “First 50” — flagship locations where Macy’s is testing out new sales tactics — did better than other locations.
Management plans to deliver its full quarterly results and host a conference call on the figures by December 11.
The stock, which surged 8.2% on Friday, was down modestly ahead of the open.
