Nov. 25 (UPI) — Macy’s announced Monday that it would delay its full third-quarter earnings report because of an employee hiding up to $154 million in expenses, sending its stock plummeting in early trading.
The iconic retailer did release preliminary third-quarter results, adding that the full report, along with the fourth quarter and full-year guidance, will be unveiled by Dec. 11.
Macy’s said it recently learned that an employee, which it did not name, intentionally hid as much as $154 million in expenses over three years. The revelation leads the retailer to perform an independent forensic accounting investigation.
The company said accounting errors were made in the small packaging delivery expenses. Macy’s said not to explain why the employee, who is no longer with the company, hid the expenses.
Macy’s stock was trading at $15.68 a share, down 3.8%, at midday Monday. It had traded as high as $22.10 within the last year.
Macy’s said it its preliminary report of its first 50 locations, comparable sales growth was up 1.9%. Luxury brand Bluemercury reported comparable sales growth of 3.3%. It said asset sale gains of $66 million were ahead of expectations.
“We delivered third-quarter sales in line with expectations as we continued to make traction on our Bold New Chapter strategy initiatives,” Tony Spring, chair and CEO of Macy’s, said in a statement.
“Our Macy’s First 50 locations achieved their third consecutive quarter of comparable sales growth. At the same time … Bloomingdale’s and Bluemercury, reported positive comparable sales. Importantly, November comparable sales are trending ahead of third-quarter levels across nameplates.”