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Macy's Probe Found Employee Acted Alone in $151 Million Accounting Scandal

^{Published on 2024-12-11 23:21:13 - Wall Street Journal}
 

• Macy's has completed its investigation into accounting problems and found that a single employee's mistake and coverup created $151 million in false bookkeeping entries.

Macy's Inc. reported a significant decline in its third-quarter earnings for 2024, with adjusted earnings per share dropping to 15 cents from 21 cents the previous year, missing Wall Street expectations. The company's revenue also fell by 7.1% to $4.86 billion, which was below the anticipated $4.81 billion. This downturn was attributed to a challenging retail environment, with Macy's experiencing a 6.7% decrease in same-store sales, driven by reduced consumer spending on discretionary items like apparel and accessories. Despite these setbacks, Macy's managed to slightly improve its gross margin by 10 basis points to 38.4%, thanks to lower markdowns and reduced freight costs. However, the company's operating income saw a sharp decline of 67% to $100 million, reflecting the broader pressures on profitability. In response, Macy's has been focusing on cost-cutting measures, including layoffs and store closures, while also attempting to pivot towards more profitable segments like beauty and off-price retail through its Bloomingdale's and Bluemercury brands.

Read the Full Wall Street Journal Article at:
[ https://www.wsj.com/business/retail/macys-m-q3-earnings-report-2024-c7363662?mod=retail_news_article_pos5 ]

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