Target data breach cuts profits 46 percent in 4Q

Looks like Target Corp. will be feeling the financial pain for a while from the theft of credit card numbers and other information from millions of its customers.
Associated Press
Feb 27, 2014

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.

Comments

Gardenman

Target handled the whole thing poorly. They took the course of action that if you have a problem then you let us know about. They were never proactive, fully transparent on what had happen, and gave the assurance it would not happen again. They gave the visual of "Don't worry about...you are overreacting."

They failed Public Relations 101 and they deserve to pay the price in lost sales.

Target needs to do some action and fast to turn this around.

The Hero Zone's picture
The Hero Zone

I agree with your opinion, Gardenman. While the ball wasn't dropped in addressing it, it could have been done better in my own opinion. At least people had other options to exercise when it came to where they shopped and used their personal information.

With no intention of making things political and derailing the article/concurrence, I'll add that this is why the centralization of our data by entities that we can't escape makes me nervous. I can shop elsewhere for groceries but I can't pay my income taxes to another entity, etc.

Contango

Re: "it could have been done better,"

Read more like a case of 'informational fog.' They weren't sure of the full extent of the damage.

Visa is pushing for EMV cards.

http://www.marketwatch.com/story...

Speaking of 'info fog,' too bad the Obama admin. isn't a publicly traded stock with their disastrous roll-out of Obama☭are.