US department store Macy's claims a dishonest employee hid more than $130 million (£103 million) in costs for the company over around three years, leading it to delay publishing its latest accounts.
Macy's, which also owns Bloomingdales and makeup chain Bluemercury, said it was postponing its quarterly sales update while it investigated the incident.
The person was responsible for tracking expenses related to small package deliveries, the retailer said. She added that she believed the person acted alone.
Macy's also said the impact was limited and would not affect its payments to other businesses.
Macy's said it discovered an issue with shipping fees earlier this month as it began preparing its financial update.
An investigation and forensic analysis later found that a “single employee responsible for accounting for small package delivery expenses intentionally made erroneous accrual accounting entries” starting around late 2021, Macy's said .
The more than $130 million that was misaccounted for is only a small fraction of the more than $4.3 billion in overall delivery spending during that period, he added.
Macy's said it plans to deliver a final report to investors on Dec. 11. The person allegedly responsible is “no longer employed” by the company, the statement said.
He did not respond to a message seeking confirmation that the person had been fired.
“At Macy’s, Inc., we promote a culture of ethical conduct,” said Chief Executive Officer Tony Spring.
“While we work diligently to complete the investigation as quickly as possible and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our clients and executing of our strategy for a successful holiday season.”
The problem adds to challenges facing Macy's, the largest department store chain in the United States, which is facing declining sales and heading into an uncertain holiday shopping season.
In the three months to Nov. 2, sales fell 2.4% compared to the same period in 2023, as growth at Bloomingdales and Bluemercy was offset by declines at former Macy's locations.
