US: Target lowers Q4 guidance amid data breach
Data breach to hit Target's bottom line
Target Corp has warned of larger losses than expected in its fourth-quarter as it revealed a data breach in December may now have affected 70m customers.
In a trading update, the US retailer lowered its overall fourth-quarter adjusted earnings guidance to a range of US$1.20 to $1.30 per share, down from previous guidance of $1.50 to $1.60 per share.
The outlook, Target said, anticipates a fourth-quarter comparable sales decline of around 2.5%. It had previously forecast flat comparable sales.
The retailer, which is due to report its earnings on 26 February, added that it will close around eight underperforming stores on 3 May.
The group also revealed its pre-Christmas security breach was more extensive and has affected millions more shoppers than reported last month.
The breach, which saw hackers steal the personal information of its shoppers, including names, phone numbers and mailing addresses, may now have affected around 70m customers, it said. Target had originally disclosed that around 40m had been affected.
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