Macy's Financial Re-evaluation

(Reuters) – Macy's (NYSE:M) announced on Thursday that a re-evaluation of its financials revealed ineffective internal controls regarding record maintenance as of February this year.

The retailer initiated this evaluation in late November after discovering that an employee had concealed approximately $154 million in expenses over several years. As a result, the company postponed its third-quarter results to Dec. 11.

Macy's CEO Tony Spring and financial chief Adrian Mitchell, under the oversight of the board, examined the effectiveness of internal controls and acknowledged that financial reporting was ineffective due to a material weakness as of Feb. 3.

The department store chain stated that it is implementing changes to improve internal controls and address the identified material weakness.