Dec 11, 6:58 AM ET
Macy's cuts 2024 profit outlook and discloses $151 million delivery expense misstatement
Macy's reported third-quarter 2024 net sales down 2.4% to $4.7 billion and adjusted diluted EPS of $0.04, then lowered its 2024 adjusted EPS outlook. The company also said a former employee intentionally hid about $151 million of cumulative delivery expenses from Q4 2021 through Q3 2024, leading to a material weakness in internal controls and a determination that prior internal control reports should no longer be relied upon. Shareholders face weaker profit guidance and an internal control failure, though the company says the errors did not affect net sales, net cash flows or vendor payments.
- Q3 2024 net sales fell 2.4% to $4.7 billion; comparable sales down 1.3% on an owned-plus-licensed-plus-marketplace basis.
- Q3 2024 GAAP diluted EPS was $0.10 versus $0.15 a year earlier; adjusted diluted EPS was $0.04 versus $0.21.
- 2024 adjusted diluted EPS guidance is now $2.25 to $2.50, down from $2.34 to $2.69 adjusted for delivery expense and $2.55 to $2.90 as of August 21, 2024.
- On December 10, 2024, the Audit Committee said management's 2024 internal control report and KPMG LLP's related opinion should no longer be relied upon.