From CNBC: 2024-12-11 07:38:34

Macy’s has concluded an investigation into an employee who hid $151 million in delivery expenses on its books for nearly three years. CEO Tony Spring stated that they are implementing changes to prevent this from happening again and maintain corporate governance standards. The investigation found no material impact on previous financial results.

The employee responsible for the accounting discrepancies has left Macy’s. As a result, the company had to lower its full-year earnings outlook, now expecting adjusted EPS of $2.25 to $2.50, down from $2.34 to $2.69. However, they slightly raised their sales forecast to between $22.3 billion to $22.5 billion.

In the third quarter, Macy’s reported a 2.4% drop in net income to $28 million. The company’s namesake brand saw a 2.2% decline in comparable sales. Despite challenges, Macy’s is seeing stronger sales in stores where they have increased investment and staffing, with comparable sales growing by 1.9%.

Investors, including activist group Barington Capital, are putting pressure on Macy’s to make strategic moves, like potentially selling its luxury brands. The company’s stock dropped over 8% in premarket trading following the revised earnings outlook. Macy’s has faced activist investor interest multiple times in the past decade.



Read more at CNBC:: Macy’s (M) earnings Q3 2024