Macy’s shares fell 3.5% after it delayed quarterly results after discovering an employee hid millions in delivery costs.

Macy’s delayed its third-quarter results on Monday after it was discovered that an employee hid as much as $154 million in expenses over the years, instead issuing preliminary sales figures that fell short of Wall Street expectations.

The surprise announcement potentially deprives the market of a major department-store bellwether forecast ahead of an uncertain holiday season that favors retail giants like Walmart and Amazon.

Macy’s said a single employee “intentionally” made false accounting entries to hide about $132 million to $154 million in delivery costs between the fourth quarter of 2021 and the third quarter of 2024. It recorded around $4.36 billion in delivery costs in the period.

That employee is no longer with the company, Macy’s said, sending shares down 3.5% after the revelation accompanied early sales figures. The department store chain was set to report results on November 26 and will now publish them by December 11.

“It looks bad … it suggests they got away with it,” said Morningstar analyst David Swartz, adding that the mistake shouldn’t worry investors because the amount over three years doesn’t seem significant for Macy’s.

Macy’s preliminary results showed net sales fell 2.4% to $4.74 billion, compared with an estimate of $4.77 billion compiled by LSEG, a sign that heavy promotions failed to attract customers who opted for holiday shopping.

The company said an independent investigation revealed no involvement by any other employee, and no indication of an error affecting cash management activities or vendor payments.

Along with its full third-quarter results, Macy’s said it will provide fourth-quarter and annual outlooks, as well as hold its earnings call.

CEO Tony Spring said November comparable sales were ahead of third-quarter levels in the run-up to the crucial shopping season when retailers offer big discounts.

Target and some other department store chains may see muted sales as they shift to less expensive non-essentials.

“While we work diligently to complete the investigation as quickly as possible and ensure this matter is handled appropriately, our colleagues … are focused on executing our strategy for a successful holiday season,” Spring said. said