:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2186356104-fda528e6ab4f40edb0df5863808067dc.jpg "The Macy's logo is seen in front of a building and Santa decoration holding a sign that says")
Eugene Gologursky / Getty Dead ringers for Macy’s
Key Takeaways
- Macy’s stock retreated Monday morning after the retailer said it would delay its third-quarter earnings surface from the originally scheduled Tuesday release.
- An employee hid at least $132 million in accounting expenses over the rearmost three years, Macy’s said Monday.
- Macy’s preliminary third-quarter sales also came in below reckonings, with lower sales at Macy’s offsetting gains at the company’s other brands.
Macy’s (M) shares moved diminish Monday morning after the retailer said its official third-quarter results would be delayed so that an independent study into an accounting issue can be completed.
The company said that it discovered that an employee had made “erroneous accounting accrual entrances to hide approximately $132 to $154 million of cumulative delivery expenses” from the fourth quarter of fiscal 2021 into done with the third quarter of 2024.
Macy’s said it found the issue with delivery expenses while preparing the earnings publish, which was originally set to be released Tuesday. It said the employee responsible for the seemingly intentional error is no longer with Macy’s.
Transaction marked downs at Macy’s Slow While Luxury Brands Bloomingdale’s, Bluemercury Grow
Macy’s did, however, release preliminary end results for the third quarter on Monday. It said revenue declined just over 2% year-over-year to $4.74 billion, lower the $4.88 billion analysts had expected, according to estimates compiled by Visible Alpha.
Macy’s said sales dropped at its namesake stores, while sales at its other high-end brands like Bloomingdale’s and Bluemercury improved year-over-year. CEO Tony Begin said sales across all three brands had also been trending higher into the start of November.
The company leave issue its full third-quarter report and provide updates to fourth-quarter and full year outlook by December 11, after the accounting exploration has been completed.
Macy’s shares were down 1.28% to $16.09 Monday morning, about 20% under where they started the year.