FOX Business' Lauren Simonetti breaks down New York City's “Cavuto: Coast to Coast.”
Macy's said it will not release its full third-quarter earnings report as scheduled this week after it was discovered that employees “intentionally” concealed up to $154 million in expenses. .
The company had been scheduled to release a report on Tuesday morning, but instead released preliminary findings on Monday that showed it missed Wall Street's expectations.
Macy's has postponed its full third-quarter earnings report and call after discovering an accounting problem caused by one employee. (Bridget Bennett/Bloomberg via Getty Images/Getty Images)
The department store chain said that while preparing its financial statements for the current quarter, it discovered some anomalies in shipping costs for one account.
Macy's launched an investigation and found that “an employee responsible for accounting for shipping costs for small packages intentionally made false accruals to hide approximately $132.” [million] “Cumulative delivery costs for the fourth quarter of 2021 through the fiscal quarter ending November 2, 2024 amount to $154 million,” the company said in a press release.
This year, 90 years after Mickey Mouse, Minnie Mouse will appear on the Macy's Thanksgiving Day Parade Balloon.
Macy's recorded approximately $4.36 billion in shipping costs during the period.
Macy's preliminary third-quarter earnings report showed the company missed Wall Street expectations. (Gary Hershawn/Getty Images/Getty Images)
The employee has now left the company, and Macy's has postponed its third quarter report and earnings release until Dec. 11.
Sales slump ahead of the holiday season, and target stock price plummets
“At Macy's, we promote a culture of ethical behavior,” Macy's CEO Tony Spring said in a statement. “While we are working diligently to complete the investigation and ensure this matter is properly handled as quickly as possible, our colleagues across the company remain committed to serving our customers and executing our strategy for a successful holiday season. I’m focused.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| M | Macy's Inc. | 15.76 | -0.54 |
-3.31% |
Macy's preliminary results show that net sales fell to $4.74 billion, compared to analysts' expectations of $4.77 billion, significantly pushing back customers who have become more selective with their purchases for the holiday season. This shows that proper promotions are not attracting people.
CLICK HERE TO GET FOX BUSINESS ON THE GO
But Spring said comparable sales in November are trending above third-quarter levels, heading into a key shopping season when retailers offer deep discounts.
Reuters contributed to this report.
