‘Barron Roundtable’ panel provides information on investments in Macy’s, Nordstrom and Gilead Sciences.
Macy’s provided an update on the former employee who was responsible Hiding approximately $151 million Cumulative distribution expenditure in the last three years.
On Wednesday, Macy’s CEO Tony Spring said the company had completed its investigation and “determined that the individual responsible for this issue knowingly made incorrect accounting accrual entries beginning in the fourth quarter of 2021 and subsequent periods.” Acted alone and did not pursue these acts for personal gain.”
Chief financial officer Adrian Mitchell said: “It was not theft.”
| anchor | Security | Last | Change | Change % |
|---|---|---|---|---|
| m | Macy’s Inc. | 16.93 | +0.69 |
+4.25% |
Macy’s says employees ‘knowingly’ hid up to $154 million in expenses
Macy’s said the incorrect entries between fiscal year-end 2021 and Nov. 2, 2024 “had no impact on the company’s reported net cash flow, inventory or vendor payments.” The $151 million in delivery expenses is only a portion of the roughly $4.36 billion Macy’s said it earned during the same period.
People walk past a large Macy’s billboard on a building in front of the Macy’s Herald Square store on October 8, 2021 in New York City. (Gary Hershorn/Getty Images/Getty Images)
Spring told analysts on an earnings call that “the individual responsible is no longer with the company following the discovery of his actions” and that Macy’s has already “implemented additional controls to become a stronger and more disciplined organization.” “Some action can be taken to prevent this from happening again.”
Still, the company was forced to delay its full financial results for the third quarter by a few weeks after accounting errors were discovered late last month. department store chain It turned out that while preparing his financial statements, he found discrepancies in the distribution expense of an account, which caused his stock price to decline.
Shoppers leave a Macy’s department store in Las Vegas on Sunday, Nov. 7, 2021. (Bridget Bennett/Bloomberg via Getty Images/Getty Images)
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During the early stages of the investigation, Macy’s initially estimated that the hidden incorrect accounting reserve entries were approximately $132 million to $154 million.
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The incident came as Macy’s was trying to transform its operations as it struggled to compete with rivals. Activist investor Barrington Capital Group said Macy’s valuation has taken a huge hit over the past decade due to “long-term challenges in the department store sector and past management missteps” and shares have fallen nearly 70% over the past decade.
on wednesday, Massey reported Sales fell 2.4% to $4.7 billion during the third quarter due to weakness in some Macy’s locations as well as its digital channel and cold weather categories.
The company has also reduced its earnings estimates. Earnings per share will be in the range of $2.25 to $2.50, down from the range of $2.55 to $2.90 reported in August.
Fox Business’ Brec Dumas contributed to this report.
