Macy’s delays posting of third-quarter results due to accounting issue, expects weaker sales

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Macy’s delays posting of third-quarter results due to accounting issue, expects weaker sales
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A single employee ‘intentionally made erroneous accounting accrual entries’ to hide about $132-million to $154-million of delivery expenses from the fourth quarter of 2021 through third quarter of 2024, Macy’s said

on Monday delayed the publication of its third-quarter results due to an accounting issue tied to delivery expenses and instead posted preliminary results in which its sales missed Wall Street expectations.

The company said the employee is no longer with the company and that an independent investigation showed no involvement by any other employee and there was no sign of the error affecting cash management activities or vendor payments. But CEO Tony Spring said November comparable sales were trending ahead of third-quarter levels, in the run-up to the crucial shopping season, where retailers offer big discounts.

Target and several other department store chains, however, may see muted sales due to their skewness toward more slightly pricey non-essential items.

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