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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.


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