Just as retail giant Macy’s gears up for the holiday shopping season, the company is in damage control after discovering an employee intentionally hid up to $154 million in delivery expenses.
The news of the internal investigation comes as the company posted preliminary third-quarter financial results but delayed its full earnings report to shareholders.
In a news release posted by NBC News, the company said it is completing an investigation after finding “an issue related to delivery expenses in one of its accrual accounts” while preparing its third-quarter results.
The company found through an independent investigation that one employee who handled “small package delivery expense accounting” made erroneous entries to hide about $132 million to $154 million in delivery expenses from the fourth quarter of 2021 through this year’s fiscal third quarter.
The company said it had about $4.36 billion in delivery expenses during that time.
Macy’s reps declined to say how it detected the accounting errors and if it is pursuing criminal or civil charges.
In a statement, CEO Tony Spring said Macy’s promotes “a culture of ethical conduct” and remains focused on the busy holiday shopping period as customers look for decor and gifts.
“While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season,” he said in a statement.
The retailer added the actions did not affect its cash management and vendor payments, and said the employee no longer works at the company.
Macy’s said it expects to release its full results, along with fourth-quarter and full-year guidance, by Dec. 11.