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Target Slashes Q2 Profit Forecast Tied to Data Breach

TheStreet

Shares of Target are sliding in Tuesday trading after the retailer cut its second-quarter profit outlook, citing costs tied to last December's data breach that resulted in stolen customer information. The company cut its earnings per share for the quarter to about 78 cents, down from its prior guidance range of 85 cents to $1 a share. Target cited expenses of $148 million related to the breach, which was partially offset by a $38 million insurance receivable. In a statement, interim president and chief executive John Mulligan said the company is making progress in its efforts to drive U.S. traffic and sales, improve Canadian operations and advance the company's digital transformation.