Jim Cramer’s Game Plan This Week: 10 Stocks to Watch

7. Macy’s, Inc. (NYSE:M)

Number of Hedge Fund Holders: 38

Commenting on Macy’s, Inc. (NYSE:M), Cramer said:

“We also have some corporate news that could help explain something that’s been a real mystery, maybe to me, maybe to you. I’m talking about what happened, what went wrong at Macy’s where an employee apparently had millions in delivery expenses hidden. Now shareholders are entitled to know what really happened here. I don’t think the company’s fully explained them at all, and we wanna know exactly before we pay any attention to the forecast. We got to understand what went wrong. We need answers about how someone got away with this and more important, does the company now have the systems to try to catch anything like this malfeasance? I don’t know.”

Macy’s (NYSE:M) s is a well-established omnichannel retailer that offers a wide range of products, including apparel, accessories, cosmetics, home furnishings, and more, through its prominent brands: Macy’s, Bloomingdale’s, and bluemercury. While preparing its unaudited financial results, the company identified an issue related to delivery expenses within one of its accrual accounts.

An independent investigation revealed that a single employee responsible for accounting for small package delivery expenses had intentionally made incorrect accrual entries to conceal a significant portion of delivery expenses. These erroneous entries involved hiding approximately $132 million to $154 million in total delivery expenses from the fourth quarter of 2021 through the fiscal quarter ending on November 2, 2024.

Macy’s (NYSE:M) stated that there is “no indication” that these incorrect accounting entries had any effect on the company’s cash management or vendor payments, ensuring that no operational disruptions were caused by the issue. The company was scheduled to release its earnings report in November. The company announced that it will issue its fourth-quarter and full-year outlooks on December 11.