Macy’s Shares Fall After Profit Hit by Accounting Error (3)

Macy’s Inc. trimmed its profit outlook after concluding its investigation into an employee that hid millions of dollars in expenses.

The misstatement of delivery expenses will have a full-year impact of $79 million on gross margin and adjusted earnings per share, according to a statement on Wednesday. Most of the impact will be recorded in the fourth quarter.

As a result, Macy’s reduced its earnings outlook to $2.25 to $2.50 per share from a previous range from August that topped out at $2.90. It also lowered its projected gross margin rate.

Macy’s shares fell 2.3% at 2:30 p.m. in New ...