It’s probably the oddest financial news story in recent memory. Just prior to department store giant Macy’s (M) revealing its third-quarter earnings results, management disclosed that a former employee concealed up to $154 million in delivery expenses over nearly three years, starting in late 2021. The announcement startled investors, leading to a sizable drop in M stock.
According to Barchart content partner Associated Press, “[a]n independent investigation and forensic analysis found that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide roughly $132 million to $154 million of expenses from the fourth quarter of 2021 through the fiscal quarter ended November 2.”
