News Byte: Data Breach Socks Target Earnings by 46%

Share this content:
Target's Q4 results are riddled by data breach.
Target's Q4 results are riddled by data breach.
 

During the first half of its fourth quarter, said Target CEO Gregg Steinhafel in an earnings statement released today, the chain's holiday-focused marketing plan “drove better-than-expected sales.” Then the unexpected happened. Anywhere from 70 to 130 million Target customers, by various accounts, had their personal files breached by hackers and Target ended up with worse-than-could-be-imagined results.

Sales for the quarter ending February 1 dropped 6.6% and same store sales dipped 2.5%, but costs of dealing with the massive data breach socked Target net earnings to the tune of 46%—plummeting from $961 million in the 2012 quarter to $520 million.

“Results softened meaningfully following our December announcement of a data breach,” Steinhafel said. “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.”

The company said it was not currently able to estimate future expenses of the data breach, though it stated it expected it to adversely affect full-year results for 2014. Among costs it anticipates to bear due to the breach are payments associated with potential claims by the card networks for fraud losses and incremental costs associated with civil litigation, government investigations, consulting fees, and investments for remediation activities.

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above