Macy’s Delays Earnings After Finding Millions of Hidden Expenses
Macy’s said it would delay the release of its third-quarter earnings after an investigation revealed an employee hid over $100 million of expenses. An employee responsible for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide about $132 million to $154 million of cumulative delivery expenses, the company said Monday. Bloomberg’s Emily Cohn reports.
Bloomberg
Macy’s plans to close more stores than announced earlier this year could affect California shoppers.
According to the company’s third-quarter earnings report, the department store chain plans to close approximately 15 more locations after the holiday season, an increase from the previously announced 50 closures. Throughout the 2024 third quarter, the company reported net sales of $4.7 billion, a decrease of 2.4% compared to 2023 third-quarter sales.
“We now expect to close roughly 65 locations this year,” said Macy’s CEO Tony Spring in the earnings call. “In line with our typical cadence, closures will occur post-holiday.”
The increased closures are part of Macy’s strategy to accelerate the closure of “non-go-forward stores” underperforming locations. The company remains committed to closing 150 underperforming locations by the end of 2026.
Macy’s aims to reposition the company through an initiative titled “A Bold New Chapter,” which focuses on strengthening Macy’s nameplate, accelerating luxury growth, and simplifying and modernizing operations.
“A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy’s Inc,” Spring said in a statement. “We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value.”
Will Macy’s be closing stores in California?
Macy’s did not specify which store locations would be closing. Macy’s has 89 stores in California, the most of any state. Â
How many stores does Macy’s operate nationwide?
At the end of the third quarter, Macy’s had 435 locations. It also operated small format, furniture and backstage locations, bringing the total to 512 stores.
In addition, the company operates 59 Bloomingdale’s locations and 164 Bluemercury locations.
Other brands third-quarter reports
The company’s Bluemercury brand reported opening eight new stores in the third quarter. The brand’s sales were up 3.3% over 2023.
The company’s Bloomingdale’s brand saw net sales increase 1.4% over 2023 and comparable sales climb 3.2%.
Contributing: USA TODAY
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Publish date : 2024-12-14 04:01:00
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