Saturday, September 20th16.0°C
23284
22285

Target lowers forecast citing flat US sales; estimates cost of data breach

NEW YORK, N.Y. - Target has lowered its second-quarter forecast citing the promotional discounts it had to use to attract shoppers.

The Minneapolis-based retailer also said Tuesday it expects gross expenses tied to a massive data breach this past winter to come to $148 million in the period, which will be offset by $38 million in insurance. It also paid $1 billion to retire $725 million in debt.

Target Corp. has been reeling since it announced in December that hackers stole millions of customers' credit- and debit-card records. The theft hurt the chain's reputation and profits and spawned dozens of legal actions. Target is facing troubles on a number of other fronts as well, including the perceptions that its prices are higher than those at Wal-Mart Stores Inc.

The company's expansion into Canada, its first foray outside the U.S., has also been a disappointment. Analysts have said that Target botched its Canadian expansion by moving too aggressively.

In hopes of turning a new page, the company last week named PepsiCo executive Brian Cornell as its CEO. Cornell will be the first outsider to serve in the top spot at the company when he starts Aug. 12.

For its second quarter, Target said it expects sales to be flat at established locations in the U.S., as "guests continue to spend cautiously and focus on value" and that promotional discounts are expected to hurt profit margins. Sales are expected to be "somewhat softer" at its stores in Canada as well.

Its shares fell more than 3 per cent to $58.39 premarket trading.

The company now expects to earn around 78 cents per share for the quarter, excluding one-time items, down from the 85 cents to $1 per share it previously forecast. When factoring in the costs related to the data breach and the debt repayment, reported earnings per share are expected to be about 41 cent lower than that adjusted figure.

The Canadian Press


Read more Business News

22980


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4593.426-13.637
S&P 5002010.40-0.96
CDN Dollar0.9126+0.0004
Gold1216.90-10.00
Oil92.45-0.62
Lumber329.00-0.90
Natural Gas3.911-0.064

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



22364

FEATURED Property
19920601908 Begbie Road
5 bedrooms 6 baths
$1,178,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...

_








Member of BC Press Council


22267