Macy’s (NYSE:M) has postponed its third-quarter financial results after it was discovered that employees hid between $132 million and $154 million in shipping costs over several years. The company announced Monday that an employee responsible for accounting for shipping costs for small packages made “incorrect accounting accrual entries” from late 2021 through the quarter ending Nov. 2, 2024. The company subsequently terminated the employee’s employment.

Macy’s is one of the largest department store chains in the United States, known for its wide range of apparel, home goods, and luxury goods. The company operates through Macy’s flagship stores, upscale Bloomingdale’s stores and beauty-focused Bluemercury stores, with a strong online presence that complements its physical stores.

Due to the accounting issues, the company postponed its full financial results report and year-end forecast to Dec. 11. As a result, Macy’s stock fell 3.5% on Monday, adding to its 20% decline since the beginning of the year. The stock is currently trading at US$15.94.

CEO Tony Spring emphasized Macy’s commitment to ethical behavior, saying: The holiday season was a success. ”

Preliminary results showed Macy’s third-quarter net sales were $4.74 billion, down 2.4% from a year earlier, but slightly above market expectations of $4.72 billion. Comparative sales of the company’s own business and the licensed business decreased by 1.3%, which was a smaller decline than the 1.49% decline expected by analysts. Macy’s First 50 stores, where the company invested in staffing and merchandising, performed well with sales up 1.9%, while Bloomingdale’s and Bluemercury also posted growth of 1.4% and 3.2%, respectively.

Macy’s latest challenges come amid a broader turnaround effort under its “Bold New Chapter” strategy, which calls for closing 150 stores by 2027 and investing in higher-performing stores.

The company has faced increasing pressure from shareholders, particularly after rejecting a takeover offer of $24.80 per share earlier this year.