Originally set on Nov. 26, Macy (NYSE:M) postponed its Q3 earnings report claiming an accounting problem affecting delivery expenditures. The corporation then revealed early figures displaying lower-than-expected sales results.

A single employee purposefully entered erroneous accounting entries to hide $132 million to $154 million in delivery expenditures from the fourth quarter of 2021 through the third quarter of 2024, according an internal inquiry. Macy pointed out that no other staff members were engaged and that the problem had nothing bearing on vendor payments or cash handling.

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Q3 net sales of $4.74 billion, somewhat below the $4.77 billion average expectation developed by LSEG, according preliminary figures. With shares down in pre-market trade, the firm projects third-quarter sales to be down 2.4%.Though there was a sales shortfall, Macy's CEO Tony Spring voiced hope about the holiday season, saying November equivalent sales were heading above of Q3 levels. Macy's also pointed out that significant discounts have so far failed to draw budget-conscious consumers among wary consumer expenditure.

The company's results showed $4.36 billion noted as delivery expenses for the time under scrutiny, with the individual responsible no longer with the company.

This article first appeared on GuruFocus.