Macy’s Inc. has uncovered a significant accounting discrepancy involving a former employee who allegedly concealed between $132 million and $154 million in delivery expenses over nearly three years.

The individual responsible for tracking small-package delivery costs is no longer with the company.

An independent investigation revealed that the employee made erroneous accounting entries to hide these expenses from the fourth quarter of 2021 through November 2, 2024.

Despite the substantial amount, there is no indication that the accounting errors impacted Macy’s cash management or vendor payments.

As a result of the findings, Macy’s has postponed its third-quarter earnings release to December 11, 2024, to complete the independent investigation.

Preliminary results indicate a 2.4% decline in net sales to $4.742 billion, aligning with analysts’ expectations.

The company’s stock experienced a 2.6% decline following the announcement, reflecting investor concerns over the internal controls and financial oversight.

Macy’s assures stakeholders that measures are being implemented to prevent such incidents in the future.

The incident underscores the importance of robust accounting practices and internal controls in large corporations. Macy’s commitment to transparency and corrective action aims to restore confidence among investors and customers.