'Accounting irregularity' | Macy's discovers single employee who 'intentionally' hid $154m in expenses

Macy’s has postponed the release of its third-quarter financial results after uncovering an accounting irregularity involving up to $154million in delivery expenses.

The issue, attributed to a former employee, centers on erroneous entries in an accrual account for small package delivery expenses. According to Macy’s, the individual “intentionally made incorrect accounting entries” over a nearly three-year period, concealing cumulative delivery costs from the fourth quarter of 2021 through November 2, 2024.

The discrepancies, discovered earlier this month during routine preparation of the company’s financial statements, prompted an independent investigation.

In its preliminary findings, Macy’s stated that $132million to $154million of delivery expenses were hidden during this period.