The report states that Federated, which also owns Bloomingdale's, uses a Brooklyn sweatshop, where the employer locks fire exits and fails to pay overtime.
Federated Department Stores, which owns Macy's and Bloomingdale's, also raised its estimates, from 2 to 3 percent to 7 to 8 percent.
Federated, which owns Macy's and Bloomingdale's, said sales rose 1.7 percent, slightly less than analysts had expected.
Federated also owns Bloomingdale's.
Federated owns Macy's and Bloomingdale's, as well as other department store chains.
The company, which owns Macy's and Bloomingdale's, among others, stocks each store differently, depending on the attributes of the local customers.
The downturn contributed to a 1.5 percent decline in November sales at Federated, which also owns Bloomingdale's.
The company, which owns Bloomingdale's and Macy's, had predicted a drop of 2.5 percent, compared with the same period last year.
Federated, which owns Bloomingdale's, Macy's and Neiman-Marcus, was down 5.8.
Officials at Federated, which also owns Bloomingdale's, declined to comment on the lawsuit.