Big Blunders Come In Small Packages
Macys blames an employee for hiding 'small package delivery' expenses. Anyone remember the boxes at Miniscribe?
“I worked in accounting for two and a half years … and decided I was just going to give comedy a try.” – Bob Newhart.
Macys kicked off the holiday shopping season on Monday with an accounting scandal.
The iconic department store chain blamed a single employee for intentionally hiding up to $154 million in small package delivery expenses over the past three years.
This is no small number. It’s bigger than the retailer’s $105 million in total net income for 2023. It’s on par with its second-quarter 2024 earnings of $150 million. And it likely made Macys look much better to investors during a challenging period for retailers.
Somehow, an unnamed associate who no longer works at the company, has been fudging since the fourth quarter of 2021. It sounds like fraud because the company says it was done intentionally. An investigation continues. There’s a lot we don’t know.
A rogue elf?
Could a little lone elf have pulled off this stunt from the bowels of the small package delivery department?
Where, oh where, were the internal controls? Where, oh where, was KPMG, Macys’ auditor since 1988? And where, oh where, was Santa, who always knows naughty from nice? Stuffing his fat face at the food court?
Macys CEO Tony Spring wasted no time touting corporate values (which were blatantly ignored) in announcing the fiasco.
“We promote a culture of ethical conduct. While we work diligently to complete the investigation as soon as practicable 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.”
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