M plunges -8% After a Macy's Employee Hid Over $130 Million in Expenses.
Posted: Nov 25, 2024
- Employee at Macy's made intentional accounting errors to hide over $100 million in expenses
- Issue began in 2021 and continued until November 2024
- Macy's delays earnings report and investigation reveals no impact on cash management or vendor payments
- CEO Tony Spring says November sales are trending ahead of third-quarter levels
- Macy's shares fell 8.2% in premarket trading but began to recover as the financial impact is limited
- Macy's often serves as an important indicator of consumer spending during the holiday season
- Earnings report, fourth quarter, and full-year outlook to be released by December 11
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - The sentiment is mostly negative due to the accounting scandal and implications of poor oversight, with some mixed views on the potential impact on Macy's future Summarized comments: - Macy's faces significant accounting scandal where an employee hid $130M to $154M in expenses - The announcement led to Macy's delaying its third-quarter earnings release - Concerns raised about possible deeper issues within Macy's oversight and internal controls - Speculation that the hidden expenses were used to fudge numbers to meet/exceed guidance - There's disbelief among commenters about the possibility of a single employee hiding such a large amount without detection - Some comments highlight difficulties in hiding expenses, especially at a company the size of Macy's - Discussions indicate potential consequences for Macy's management due to oversight failures Stock tickers discussed: $M
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