According to Macy’s, the worker hid more than $130 million in costs

US department store Macy’s said a fraudulent employee concealed more than $130 million (£103 million) in company costs over a period of about three years, causing the company to delay publishing its latest financial reports.

Macy’s, also the owner of Bloomingdales and makeup chain Bluemercury, said it is postponing its quarterly sales update while it investigates the incident.

The individual was responsible for tracking expenses related to small package delivery. said the dealer. It added that it was believed the person acted alone.

Macy’s also said the impact was limited and would not affect its payments to other companies.

Macy’s said it discovered an issue related to delivery costs earlier this month as it began preparing its financial update.

An investigation and forensic analysis subsequently revealed that “a single employee responsible for billing the delivery costs of small packages intentionally made incorrect accounting accrual entries beginning in or about late 2021,” Macy’s said.

The more than $130 million that was concealed was a small fraction of the more than $4.3 billion in total delivery costs during that period, it said.

Macy’s said it expects to deliver a final report to investors on Dec. 11. The person allegedly responsible is “no longer employed by the company,” it said.

A message seeking confirmation that the person had been fired was not responded to.

“At Macy’s, Inc., we promote a culture of ethical behavior,” said CEO Tony Spring.

“While we work diligently to complete the investigation as quickly as possible and ensure this matter is handled appropriately, our colleagues across the business are focused on serving our customers and executing our strategy for a successful holiday season.”

The issue is compounding challenges for Macy’s, the largest department store chain in the U.S., which is struggling with declining sales and heading into an uncertain holiday shopping season.

In the three months ended Nov. 2, sales fell 2.4% compared to the same period in 2023, as growth at Bloomingdales and Bluemercy was offset by declines at older Macy’s locations.