Target cuts profit outlook after earnings fall 16 percent as breach takes toll

Target cut its annual profit outlook Wednesday and said its first-quarter earnings fell 16 percent as it took another hit from a massive customer data breach and a troubled expansion in Canada.
By ANNE D’INNOCENZIO, AP Retail Writer Published: May 21, 2014
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Target cut its annual profit outlook Wednesday and said its first-quarter earnings fell 16 percent as it took another hit from a massive customer data breach and a troubled expansion in Canada.

The retailer, based in Minneapolis, also issued a second-quarter profit projection below analysts’ expectations. Target said it doesn’t expect its six straight quarters of traffic declines to reverse this year in what analysts say is the most tumultuous time in its history.

Still, there are some encouraging signs. A key revenue metric improved after the data breach, which compromised the credit card and personal information of millions of customers.

Associated Press