Macy’s Stock Plummets After Discovery of Erroneous Accounting Entries and Delayed Earnings Report

Macy’s Inc., the iconic American department store chain, saw its stock price drop significantly in premarket trading on Monday, November 25, 2024. The decline was triggered by the company’s announcement that it had uncovered “erroneous accounting accrual entries” which led to a delay in the release of its third-quarter earnings report.

The stock dropped by 3.7% in premarket trading, reflecting investor concerns over the financial integrity and management of the company. This revelation comes at a time when Macy’s is already facing challenges, including a 2.4% decrease in third-quarter net sales compared to the same period last year, which totaled $4.742 billion.

The erroneous accounting entries have prompted an internal review, and as a result, Macy’s has decided to postpone the release of its quarterly results. This move has added to the uncertainty and skepticism among investors, contributing to the stock’s downward trend.