The US department store chain Macy's has significantly lowered its annual profit forecast and presented disappointing quarterly figures. Additionally, the company confirmed that an employee concealed shipping costs of over 150 million US dollars in a fraud case. These developments caused the stock to plummet by more than 10 percent on Wednesday.

Macy’s now expects an adjusted earnings per share of $2.25 to $2.50 for the fiscal year 2024, after previously forecasting $2.34 to $2.69. The reason for the adjustment is, among other things, a one-time effect of $79 million related to incorrectly reported shipping costs. Revenue in the quarter up to November 2 fell by 2.4 percent year-over-year to $4.7 billion.

CEO Tony Spring confirmed that a single employee had falsified the documentation, but not out of personal gain. CFO Adrian Mitchell added: "This was not theft." The responsible employee has since left the company. Spring announced plans to strengthen internal controls to prevent similar incidents in the future.

The problems underscore the challenges for Macy's in the intense competition with discounters like Walmart and online retailers. The scandal also raises questions about governance. The auditor KPMG has declared the certification of Macy's internal control systems invalid in the most recent annual report. Since October, two members of the audit committee have also resigned, although not due to disagreements with the company.

In addition to the accounting scandal, Macy's is under pressure from demands by Barington Capital Group. The activist investor is pushing for the spin-off of real estate like the iconic flagship store in Manhattan to unlock value for shareholders.