Macy's Inc. (NYSE: M) shares plummeted 7.3% in pre-market trading on Wednesday, December 11, 2024, as the department store chain prepared to report a quarterly loss amid an accounting issue involving hidden expenses.
Analysts expect Macy's to report a loss of $0.01 per share for the quarter, compared to a profit in the same period last year. The company's earnings release, initially scheduled for November, was delayed after Macy's discovered that an employee had hidden up to $154 million in expenses over several years.
The revelation of the accounting irregularities has raised concerns among investors about the company's financial transparency and internal controls. The hidden expenses, coupled with the expected loss, have weighed heavily on Macy's stock in pre-market trading, suggesting that investors are bracing for a disappointing quarterly report.
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