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Target data breach cuts profits 46 percent in 4Q

Associated Press • Feb 27, 2014 at 10:40 AM

The nation’s second largest discounter said Wednesday its profit in the fourth quarter fell 46 percent on a revenue decline of 5.3 percent as the breach scared off customers worried about the security of their private data.

While Target said sales have been recovering since the breach was disclosed in mid-December, the company expects business to be muted for some time: It issued a profit outlook for the current quarter and full year that was below Wall Street estimates.

The results come more than two months after Target disclosed personal credit card data from millions of Target customers was stolen by hackers who targeted credit card terminals in its stores.

During a conference call with investors on Wednesday, Target CEO Gregg Steinhafel said the retailer has been updating shoppers early and often on the facts of its ongoing investigation, offering free credit card monitoring to any customer shopping at a Target store and working on equipping its locations with more secure technology.

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