Macy's delays Q3 earnings release amid probe into employee allegedly hiding $154M in expenses

The department store giant Macy's on Monday said it will delay the release of its third quarter earnings, as it investigates allegations that an employee intentionally hid up to $154 million in delivery expenses.

Macy's said that it is conducting the investigation after it noted an issue with delivery expenses in one of its "accrual accounts," when preparing its third quarter results. The employee allegedly made inaccurate entries between the fourth quarter of 2021 through the current fiscal third quarter, that hid between $132 million and $154 million, per CNBC.

The company said the employee no longer works for Macy's, and that the person's actions did not affect its cash management and vendor payments. It is unclear if they are pursuing criminal charges.

“[Macy's promotes] a culture of ethical conduct," Macy's CEO Tony Spring said in a statement. “While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”

Although the full release has been delayed, the company did note on Monday that its third-quarter sales fell 2.4% to $4.74 billion.

Macy's said that it now plans to release its full earnings report on Dec. 11.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.