Macy's Shares Dip Following Profit Decline and Accounting Scandal
Macy's reports a 10% drop in shares due to third-quarter profit decline and a $151 million accounting scandal, prompting a corporate overhaul.
Macy's third quarter profit and sales slide and so do its shares
Associated Press
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Overview
Macy's announced a significant drop in third-quarter profits and sales, worsened by an accounting scandal involving a rogue employee who concealed $151 million in expenses. Despite exceeding sales expectations of $4.74 billion, the company expects lower annual profits, revising its earnings guidance downward. Internal investigations revealed the employee acted alone without personal gain, prompting enhanced financial controls. Macy's faces pressure from activist investors for strategic changes amidst challenging retail conditions, including consumer spending shifts and rising competition.
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