Target estimates data breach cost at around $150 million
- Target estimated Tuesday that expenses from its now-infamous data breach would be close to $150 million in its second quarter.
- The retailer also lowered its forecast for second quarter earnings, blaming weak sales in Canada and discounts in U.S. stores.
- Target adjusted its earnings estimate to be around 78 cents per share, down from previous estimates of 85 cents-$1 per share.
In a case of very bad timing, this news comes just one day after Target opened three new stores in Canada. Many hopes are resting on these three stores' success, as analysts contribute some of Target's woes to a Canadian expansion that may have been too aggressive. As the discount retail market continues to fluctuate, it's still speculation whether Target can regain its footing to compete.
- Los Angeles Times Target cuts forecast, pegs data breach costs at nearly $150 million