Investigation and Financial Impact
concluded an investigation into an employee who hid $151 million in delivery expenses, finding no material impact on past financial results but necessitating revisions to historical financial statements.
The incident, discovered while preparing financial statements, led to a temporary delay in reporting and a slight decrease in the company's stock value, amidst broader financial challenges and a turnaround effort.
Strategic Responses and Market Reactions
In response to the accounting error and ongoing financial difficulties, Macy's is implementing stricter controls and has slightly adjusted its sales forecast, expecting a decline yet aiming for improvement in specific store segments.
Activist investor Barington Capital's recent stake in Macy's and its proposals for strategic changes highlight investor concerns over the company's long-term viability and the department store sector's challenges.