Macy's confirms rogue employee hid $151 million in expenses over three years
A rogue employee was responsible for hiding $151 million in delivery expenses over the course of nearly three years, Macy's said Wednesday.
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.
Rating: 5