A MACY’S employee has been accused of hiding up to $154 million in accountant-related issues, forcing the department store chain to delay its earnings call.

The company uncovered the issue while preparing its third-quarter earnings report, which ended on November 2.

A Macy’s employee has been accused of hiding $154 million in accountant-related issues dating back to 2021Credit: Reuters

Macy’s said an issue related to delivery expenses in one of its accrual accounts was identified in early November.

The unnamed employee intentionally hid as much as $154 million in expenses over the course of nearly three years, dating back to the fourth quarter of 2021, the retailer said.

The single employee, whom Macy’s said is no longer working at the company, “intentionally made erroneous accounting accrual entries” to hide small package delivery expenses.

Despite the inaccurate calculation, Macy’s said there was no evidence that the errors had affected its cash management or vendor payments.

An independent forensic accounting investigation did not identify involvement by any other employee.

Macy’s did not say why the employee hid the expenses.

The company recognized about $4.36 billion in delivery expenses over the same period.

Macy’s was set to release its third-quarter earnings on Tuesday ahead of the busy holiday shopping season but delayed the results until December 11.

Nevertheless, Macy’s CEO and Chairman Tony Spring said the company’s main priority is to continue executing a strategy for a “successful holiday season.”

“At Macy’s Inc., we promote a culture of ethical conduct,” Spring said in a statement.

“While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”

Macy’s released rough earnings results for its third quarter, including that net sales fell 2.4% to $4.74 billion, slightly above the average analyst estimate of $4.72 billion.

MACY’S TURNAROUND STRATEGY

The latest hurdle for the retail giant comes after Macy’s announced in February it would be closing 150 locations nationwide over the next few years.

Fifty stores will be shuttered by the end of 2024, and another 100 over the next few years, the company has planned.

By 2026, Macy’s plans to have 350 locations nationwide.

The mass shutdown is part of Macy’s efforts to reshape the chain’s retail strategy and boost growth.

“This isn’t just about shrinking,” Spring told The Wall Street Journal at the time.

“This is about resizing the portfolio to make sure we are giving people an opportunity to shop the way they want.”

Macy’s will also build 30 smaller stores over the next two years away from shopping malls.