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Macy’s acknowledges that a rogue employee concealed $151 million in expenses for three years


Macy’s revealed that a rogue employee hid $151 million in delivery expenses over nearly three years. The employee, responsible for small package delivery expense accounting, created erroneous cost entries from late 2021 to mid-2024 and falsified underlying documents. The employee claimed the mistakes were initially made, leading to intentional errors to cover it up, but did not act for personal gain. Macy’s Chairman and CEO Tony Spring stated that the employee acted alone and has left the company. The investigation found weaknesses in internal accounting controls, prompting Macy’s to make changes to prevent similar incidents in the future. The discovery of the hidden expenses resulted in Macy’s delaying its quarterly results and shares plummeting. The company’s most recent fiscal year net profit was $105 million, making the $151 million discovery significant. The revelation comes as Macy’s is already in the midst of a turnaround effort, including plans to close 150 stores and facing pressure from outside investors to improve operations. Macy’s shares also dropped 11% in premarket trading as it reported earnings below analysts’ estimates. The company is revising its accounting processes and no longer relying on a report from KPMG regarding its internal controls.

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