Macy’s has postponed its scheduled earnings release due to an accounting issue involving delivery expenses. The delay follows the discovery of irregularities attributed to an employee who allegedly concealed $132 million to $154 million in delivery costs.
The department store was set to announce its quarterly results on Tuesday, 26 November 2024, but has now pushed back the release to 11 December. This extension allows Macy’s to finalise an investigation into errors found in a delivery expense accrual account during the preparation of its third-quarter financials. The company uncovered the issue during an independent review, which revealed the discrepancies date back to late 2021 and continued through the most recent quarter.
Macy’s stated that its total delivery expenses during this period amounted to approximately $4.36 billion. The implicated employee, who handled small package delivery expense accounting, no longer works for the company.
Macy’s has not disclosed details on how the errors were identified or whether legal action will be pursued.
While addressing the situation, Macy’s assured stakeholders that cash management and vendor payments remain unaffected. Tony Spring, CEO, Macy’s, emphasised the company’s commitment to ethical conduct and its focus on the holiday shopping season, a critical period for retail.
Despite the earnings delay, Macy’s shared some preliminary financial metrics. Third-quarter sales fell by 2.4 per cent, totalling $4.74 billion. Comparable sales, including owned and licensed businesses and its online marketplace, declined 1.3 per cent.
Macy’s has also been closing underperforming locations as part of a broader strategy. The retailer plans to shutter about 150 namesake stores by 2027, focusing on strengthening the remaining 350 locations. Gains from asset sales during the quarter reached $66 million, exceeding expectations.
