Target profits plunge 46% after holiday security breach

Target store check out counters More than 70 million customers were affected by Target's security breach

Related Stories

Profit at the US retailer Target has plunged 46% after a massive security breach over the holiday season, which cost the firm $17m (£10m).

Target said it earned $520m in the three-month period ending on 1 February.

It said that sales fell 5.3% as scared customers stopped shopping once the breach was revealed.

At least 70 million customers were affected by the hack, which occurred between 27 November and 15 December.

"Results softened meaningfully following our December announcement of a data breach," said Target chief executive Gregg Steinhafel in a statement.

"As we plan for the new fiscal year, we will continue to work tirelessly to win back the confidence of our guests and deliver irresistible merchandise and offers, and we are encouraged that sales trends have improved in recent weeks," he added.

However, the company also said it could not estimate future expenses relating to the breach, and issued a profit warning for 2014.

Nonetheless, the fourth quarter profits beat many analysts' expectations, and shares in Target rose more than 4% after the earnings were released.

Target's share price has declined 11% since the breach was revealed in December.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



From BBC Capital


  • A robot holding a table legClick Watch

    The robots who build flat-pack furniture - teaching machines to work collaboratively

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.