Cars are parked in front of a Macy’s store at Bay Fair Mall on February 27, 2024 in San Leandro, California.

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A former Macy’s employee allegedly hid up to $154 million in delivery charges for nearly three years, the retailer announced Monday.

Macy’s said it had found an issue with delivery charges on a transaction account and had launched an independent investigation, according to a preliminary report on the profit for the third quarter. The employee, who handled the accounting for the company’s small package delivery costs, “intentionally made incorrect accounting entries” to conceal $132 million to $154 million in cumulative delivery costs from the fourth quarter of 2021 through the fiscal quarter that ended on November 2, 2024. the company said.

During this period, the retailer said it recognized $4.36 billion in delivery costs, adding that there is “no indication that the accounting misstatements” affected Macy’s cash management or payments to suppliers. The employee is no longer with Macy’s and an investigation revealed that no other employees were involved, according to the company.

Macy’s said it discovered the error earlier this month as it was preparing its financial statements for the third quarter, which ended Nov. 2. As a result of the incident, Macy’s said it was delaying its third-quarter earnings release “to ensure the completion of the independent investigation.”

A full report on the quarter’s financial results and fourth-quarter outlook is expected on December 11, the company said.

“At Macy’s, Inc., we promote a culture of ethical behavior,” CEO Tony Spring said in a statement. “While we are working hard to complete the investigation as quickly as possible and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season.”