Macy’s Concludes $151M Accounting Scandal Investigation, Updates Strategy and Earnings Forecast

The retailer confirms a single employee concealed expenses over three years, revises financial statements, and accelerates store closures as part of its turnaround plan.

Macy's completed an investigation revealing a former employee intentionally hid $151 million in delivery expenses from 2021 to 2024; the individual acted alone and without personal financial gain.
The accounting errors delayed Macy's third-quarter earnings release and led to revised historical financial statements, though the company stated there was no material impact on cash flow, revenue, or vendor payments.
Macy's lowered its full-year profit guidance to $2.25-$2.50 per share, down from a prior range of $2.34-$2.69, but slightly increased its annual sales forecast to $22.3-$22.5 billion.
The company is accelerating its store closure plan, now targeting 65 additional closures by January 2025, as part of its 'Bold New Chapter' strategy to shutter 150 underperforming locations by 2027.
Macy's continues to focus on growth areas, with Bloomingdale’s and Bluemercury reporting sales increases, and its revamped 'First 50' stores showing positive sales trends.