Macy’s verifies that a rogue employee concealed $151 million in expenses over a three-year period

Macy’s announced that a rogue employee was responsible for hiding $151 million in delivery expenses over almost three years, causing the company’s shares to tumble. The employee created erroneous cost entries from the fourth quarter of 2021 through the third quarter of 2024. Macy’s delayed reporting its quarterly results and is implementing stronger controls to prevent similar incidents. The employee behind the fraudulent entries has been terminated from the company. The discovery of the hidden expenses comes as Macy’s is working on a turnaround plan and facing challenges due to shifts in consumer habits. The company reported earnings that missed analysts’ estimates, leading to a decrease in its shares. Despite the large sum of money involved, it is relatively small compared to Macy’s overall delivery expenses during the period. The incident has raised concerns about the company’s corporate governance and ethical conduct. An outside investor group has recently taken a significant stake in Macy’s with plans to push for changes, including monetizing its real estate holdings. Macy’s recently announced a plan to close 150 stores over the next few years as part of its efforts to adapt to changing market conditions.

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