Macy's Financial Struggles and Employee Misconduct

Macy's is facing serious financial issues after disclosing that an employee may have hidden up to $154 million in delivery expenses over three years, prompting a delay in their earnings release. While the potential earnings correction of 20 cents per share appears manageable, the situation raises questions about the company's internal financial controls. Despite these challenges, preliminary third-quarter sales results show a slight decline of 1.3%, better than analyst expectations of a 1.5% decrease. Additionally, the luxury divisions of the company reported growth, suggesting that Macy's may be able to recover from this setback.