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Accounting Scandal

All articles tagged with #accounting scandal

business1 year ago

Macy's Employee's $151M Cover-Up Sparks Shareholder Outrage

Macy's has concluded an investigation into a $151 million accounting error attributed to a single employee who made an initial mistake in late 2021 and subsequently covered it up. The error, which did not affect revenue or vendor payments, led to a delay in Macy's third-quarter earnings release and a drop in stock price. Macy's is now implementing stronger controls to prevent future issues. Despite the scandal, Macy's is focusing on growth opportunities at select store locations and remains committed to sustainable, profitable growth.

via Fortune|
#accounting-scandal#business#corporate-governance
business1 year ago

Macy's Uncovers $151M Accounting Scandal by Lone Employee

Macy's discovered that a former employee hid over $151 million in expenses to cover up a bookkeeping mistake, without personal gain. This revelation delayed the company's earnings report and led to a significant drop in its stock price. Macy's has since lowered its profit outlook and plans to close 65 stores next year as part of a broader strategy to shutter 150 locations by 2027. The company is implementing stricter controls to prevent future incidents.

via New York Post |
#accounting-scandal#business#financial-report
business1 year ago

Macy's Employee's $151M Cover-Up Sparks Stock Plunge

Macy's has concluded an investigation into an employee who hid over $150 million in expenses, leading to tightened controls to prevent future issues. The accounting discrepancies, discovered last month, delayed Macy's earnings report but were not material to past financial statements. Despite resolving the issue, Macy's stock fell over 11% after lowering its profit forecast and reporting a 2.4% drop in quarterly sales. The company faces pressure from activist investors to improve its financial performance, including calls to sell off assets.

via CNN|
#accounting-scandal#activist-investors#business
business1 year ago

Macy's Faces Financial Fallout from $151M Accounting Error

Macy's Inc. reported third-quarter sales of $4.74 billion, slightly above expectations, but lowered its annual profit forecast due to an accounting misstep involving $151 million in delivery expenses. Despite sales growth in certain segments like Bloomingdale's and Bluemercury, overall comparable sales declined. The company's stock fell 10.3% following the news. Macy's now expects 2024 sales between $22.3 billion and $22.5 billion, with adjusted EPS guidance lowered to $2.25-$2.50.

via Benzinga|
#accounting-scandal#business#earnings
business1 year ago

Macy's Faces Financial Turmoil Amid Accounting Errors and Investigations

Macy's concluded an investigation into an employee who hid $151 million in delivery expenses over three years, leading to revised financial statements. The company is enhancing its internal controls to prevent future issues. Despite the scandal, Macy's reported a slight increase in its full-year sales forecast but lowered its earnings outlook, causing shares to drop over 8%. The company is also facing pressure from activist investors, with Barington Capital pushing for strategic changes, including a potential sale of luxury brands.

via CNBC|
#accounting-scandal#activist-investors#business
business1 year ago

Macy's Faces Scrutiny Over $132 Million Accounting Scandal

Macy's recently disclosed a significant accounting issue where a former employee hid up to $154 million in expenses over three years in the small package delivery department. This oversight, which did not affect cash management or vendor payments, suggests a lapse in financial oversight. Experts note that the hidden expenses, while substantial, were relatively small compared to Macy's overall costs and may have been obscured by the pandemic-driven surge in online shopping and shipping costs. Macy's stock dipped slightly following the revelation, raising questions about the company's internal controls.

via ABC News|
#accounting-scandal#business#financial-oversight
business1 year ago

Macy's Uncovers Employee's $154M Expense Concealment

Macy's has delayed its quarterly sales update after discovering that a single employee concealed over $130 million in delivery-related costs over three years. The company is conducting an investigation and has stated that the issue will not affect its payments to other firms. The employee responsible is no longer with the company. Despite the incident, Macy's is focusing on its holiday season strategy amid declining sales.

via BBC.com|
#accounting-scandal#business#corporate-ethics
business1 year ago

Macy's Uncovers $154M Expense Concealment by Rogue Employee

Macy's has delayed its quarterly earnings release after discovering that a former employee intentionally concealed up to $154 million in expenses over several years. The discrepancies were found during the preparation of unaudited financial results, which showed a 2.4% drop in quarterly revenue. The rogue employee, responsible for small package delivery expense accounting, acted alone, and the issue did not affect cash management or vendor payments. Macy's is conducting an independent investigation and plans to release full results on December 11.

via New York Post |
#accounting-scandal#business#financial-results
business1 year ago

Macy's Delays Earnings After Employee Conceals $154M in Expenses

Macy's has delayed its third-quarter earnings release after discovering an employee hid up to $154 million in expenses over several years. The issue, related to delivery expenses, was uncovered through an independent investigation, and the responsible employee is no longer with the company. Despite the accounting scandal, Macy's reported a 2.4% decline in net sales to $4.74 billion, slightly above analyst expectations. The company plans to release full financial results by December 11, while focusing on a successful holiday season.

via ABC News|
#accounting-scandal#business#earnings-delay
business1 year ago

Macy's Uncovers $154M Expense Fraud, Delays Earnings Report

Macy's has postponed its third-quarter results release after discovering an employee concealed $132 million to $154 million in delivery expenses through erroneous accounting entries since late 2021. The company has initiated an independent investigation and stated that the employee is no longer with the company. Preliminary results showed a slight decline in sales to $4.74 billion, leading to a 3% drop in Macy's shares in pre-market trading.

via Financial Times|
#accounting-scandal#business#delivery-expenses
business1 year ago

Super Micro Risks Nasdaq Delisting Amid Auditor Search

Super Micro Computer (SMCI) risks being delisted from the Nasdaq exchange if it fails to file necessary financial documents by November 18, amid an ongoing accounting scandal. The company's stock has plummeted 72% in three months following accusations of accounting malfeasance and the resignation of its auditor. Despite a previous surge due to its role in the AI boom, SMCI's stock is now down 38% for the year. Analysts currently rate the stock as a Hold, with a potential upside if compliance is achieved.

via TipRanks|
#accounting-scandal#business#delisting
business1 year ago

ADM Faces Ongoing Accounting Challenges, Stock Plummets

Archer-Daniels-Midland Co. (ADM) continues to grapple with accounting issues nearly 10 months after a scandal emerged, leading to further financial restatements for 2023 and 2024. Despite the company claiming no material impact on consolidated earnings, the scandal has significantly affected investor confidence, erasing $12 billion in market value and prompting investigations by the Department of Justice and SEC. ADM's internal controls over financial reporting remain under scrutiny, with the company working to implement new controls by year-end.

via Yahoo Finance|
#accounting-scandal#adm#business