US department store Macy’s has said a rogue employee hid more than US$130 million ($103 million) in operating costs for about three years, delaying the publication of its latest accounts.

Macy’s, which also owns Bloomingdales and the Bluemercury makeup chain, said it is delaying its quarterly results as it investigates the incident.

The person was responsible for tracking costs related to the delivery of small packages, said the shopkeeper. It added that it believed the person had acted alone.

Macy’s also said the impact was limited and would not affect payments to other companies.

Macy’s said it discovered an issue with delivery costs earlier this month as it began preparing its financial update.

Investigation and forensic analysis subsequently revealed that a “single employee responsible for small package costing intentionally made incorrect accounting entries” starting in late 2021, Macy’s said.

The more than $130 million hidden was a small portion of the more than $4.3 billion in total delivery costs at the time, it added.

Macy’s said it expected to provide a final report to investors on December 11. The person believed to be responsible is “no longer employed” by the company, the company said.

There was no response to a message asking to confirm the person had been fired.

“At Macy’s, Inc. we promote a culture of ethical behavior,” said CEO Tony Spring.

“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.”

The issue adds to the challenges facing Macy’s, the largest department store chain in the U.S., which is struggling with declining sales and heading into an uncertain festive shopping season.

For the three months ended Nov. 2, sales fell 2.4% from the same period in 2023, as growth at Bloomingdales and Bluemercy was offset by declines at older Macy’s locations.