Target says it will miss its mark
The corporate cost of one the largest retail data breaches in history is beginning to be quantified. On December 19, 2013 Target admitted that credit and debit card information was stolen from its U.S. customers. The company initially said 40 million shoppers were affected. Later, it said the number was in fact somewhere between 70 million and 110 million.
Tuesday morning, Target announced is was cutting its second quarter earnings estimate. The company now expects to earn $0.78 a share rather than $0.85 a share for the quarter. Analysts polled by Thomson Reuters had been expecting the retailer to earn $0.91 a share. Reuters Siddarth Cavale reports that the drop is due to “price cuts to attract cash-strapped consumers and win back customers,” as well as increased actual and potential payments related to the breach.
Reuters’ Stephen Culp charts Target’s stock price performance since the data theft was announced: