Target Cuts Profit Outlook on $148 Million in Data Breach Costs


WATCH: More market update videos on TheStreet TV | More videos from Brittany Umar

NEW YORK (TheStreet) -- Target  (TGT) cut its second-quarter profit outlook, citing costs tied to last year's data breach.

VIDEO TRANSCRIPT:

Shares of Target are sliding in Tuesday trading after the retailer cut its second-quarter profit outlook, citing costs tied to last December's data breach that resulted in stolen customer information.

The company cut its earnings per share for the quarter to about 78 cents, down from its prior guidance range of 85 cents to $1 a share.  Target cited expenses of $148 million related to the breach, partially offset by a $38 million insurance receivable.

In a statement, interim president and chief executive John Mulligan said, "While the environment in both the U.S. and Canada continues to be challenging, and results aren't yet where they need to be, we are making progress in our efforts to drive U.S. traffic and sales, improve our Canadian operations and advance Target's digital transformation."

At last check, shares of Target were falling about 3.6% to $58.51.

In New York, I'm Brittany Umar reporting for TheStreet.

-- Written by Brittany Umar in New York

More from Opinion

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

It's Just Not Smart For Investors to Ignore the Threat of a Trade War