Macy's Inc. has recently conducted an internal investigation which uncovered a scheme involving a former employee who allegedly manipulated delivery cost metrics.

The investigation revealed that this individual concealed around $154 million in delivery expenses since 2021, which has raised concerns about the accuracy of the company's financial disclosures to Wall Street analysts.

Macy's has clarified that no cash was misappropriated and the hidden expenses only represent a small portion of the total $4.36 billion in delivery costs incurred during the same period.

This revelation has surprised investors, as Macy's had previously emphasized its ability to increase profits through cost-cutting measures.

This incident highlights the importance of transparency in financial reporting within the retail industry.