Macy’s employee conceals $151 million in expenses over three-year period, company confirms

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A rogue employee at Macy’s hid $151 million in delivery expenses over nearly three years by creating erroneous cost entries. Macy’s revealed this in a statement accompanying its quarterly earnings results, causing its shares to tumble. The employee responsible for the accounting manipulation has since left the company, and Macy’s has vowed to strengthen controls to prevent future incidents. While the $151 million hidden is small compared to overall delivery expenses during the period, it exceeds the company’s most recent fiscal year net profit. The discovery comes as Macy’s navigates consumer behavior changes and attempts a turnaround, including plans to close 150 stores. An outside investor group has also taken a significant stake in Macy’s to push for operational changes, including monetizing real estate holdings. Macy’s shares were down as much as 10% in pre-market trading following the announcement. CEO Tony Spring emphasized the company’s commitment to ethical conduct and integrity across the entire organization.

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