MW Macy's stock drops after 'erroneous' accounting entries found, leading to delay of quarterly results

Shares of Macy's Inc. $(M)$ dropped 3.7% in premarket trading Monday, after the department-store chain said it uncovered "erroneous accounting accrual entries," which will result in the company delaying the release of fiscal third-quarter results. The company said a single employee with responsibility for small package delivery expense hid about $132 million to $154 million of expenses from the fourth quarter of 2021 through the fiscal quarter ended Nov. 2, 2024. During that time, the company had about $4.36 billion expenses. "There is no indication that the erroneous accounting accrual entries had any impact on the company's cash management activities or vendor payments," Macy's said in a statement. "The individual who engaged in this conduct is no longer employed by the company." As a result, the company said it now expects to report fiscal third-quarter results by Dec. 11, after it was slated to reveal the results on Nov. 26. Separately, the company said net sales for the latest quarter declined 2.4% to $4.74 billion to top the FactSet consensus of $4.72 billion, and same-store sales fell 2.4%, compared with the FactSet consensus for a 2.3% decline. The stock has tumbled 19% year to date through Friday, while the S&P 500 has rallied 25.2%.

-Tomi Kilgore

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November 25, 2024 07:19 ET (12:19 GMT)

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