Macy’s says the worker saved more than $130 million in costs

US department store Macy’s has said a rogue employee hid more than $130m (£103m) in company costs over about three years, prompting it to delay publishing its latest accounts.

Macy’s, also the owner of Bloomingdales and make-up chain Bluemercury, said it was postponing its quarterly sales update as it investigates the incident.

The person was responsible for tracking expenses related to small package deliveries, said the dealer. It added that it believed the person had acted alone.

Macy’s also said the impact was limited and would not affect its payments to other firms.

Macy’s said it had discovered a problem related to delivery costs earlier this month when it began preparing its financial update.

An investigation and forensic analysis subsequently identified that a “single employee responsible for accounting for small package delivery costs knowingly made erroneous accounting entries” beginning around the end of 2021, Macy’s said.

The more than $130 million hidden was a small fraction of the more than $4.3 billion in total delivery costs during that time, it added.

Macy’s said it expected to provide a final report to investors on Dec. 11. The person allegedly responsible is “no longer employed” by the company, it said.

It did not respond to a message trying to confirm the person had been fired.

“At Macy’s, Inc., we foster a culture of ethical behavior,” said CEO Tony Spring.

“While we are working diligently to complete the investigation as quickly as possible and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”

The problem adds to the challenges facing Macy’s, the largest department store chain in the United States, which has struggled with declining sales and is heading into an uncertain holiday shopping season.

In the three months through Nov. 2, sales fell 2.4% from the same period in 2023, as growth at Bloomingdale’s and Bluemercy was offset by declines at older Macy’s locations.