abc
QUICK LINKS:

Target Profits Down, Sales Flat as Expected

Updated: 08/20/2014 6:21 PM
Created: 08/20/2014 6:12 PM KSTP.com
By: Joe Augustine

Target shareholders are expected to make less money in 2014. The Minneapolis-based retailer released its second-quarter results Wednesday. Sales were flat and profit earnings were down 62 percent, when including costs of the massive data breach.

Target announced a data hack in the middle of the holiday season which put the information for millions of customers at risk.

That breach cost Target $111 million. The company hopes expenses for the majority of breach-related claims have already been settled.

New company leadership, including new Chief Executive Officer Brian Cornell, will now focus on increasing sales.

A company spokesperson says, overall sales trends are positive and customer traffic has increased in recent months.

"It doesn't surprise me that they'll have a bad quarter or two," said. Dr. Dave Vang, an economist at the University of St. Thomas,.

Vang believes the long-term outlook for Target is still positive.


Minneapolis/St. Paul

Few Clouds
61°
70° | 56°
  • Feels like: 61° F
  • Wind: E 8mph
  • Humidity: 75%
  • Fri A few thunderstorms possible
    76° | 62°
  • Sat Times of sun and clouds
    78° | 56°
  • Sun More sun than clouds
    70° | 53°
  • Mon Mix of sun and clouds
    68° | 48°

Video

KSTP NEWS