Target reported a 62 percent drop in second-quarter profit and cut its full-year earnings forecast as it resorts to price cuts to attract cash-strapped consumers and win over shoppers unnerved by a massive holiday-season data breach.
Target, whose shares were down 2.5 percent at $57.75 in premarket trading on Wednesday, cut its full-year adjusted profit forecast to $3.10-$3.30 per share from $3.60-3.90. (Click here to get the latest quote.)
The company cut its earnings estimate for the second quarter earlier this month, saying a pullback in consumer spending had led to weak sales.
The profit announced on Wednesday matched the company's estimate released on Aug. 5.
Target also said then that the data breach, which resulted in the theft of at least 40 million payment card numbers and 70 million other pieces of customer data, had cost it a net $111 million so far after taking insurance into account.
The company did not provide an updated figure on Wednesday.
Sales at U.S. mass merchandisers such as Target and Wal-Mart Stores have been hit as consumers struggling with stagnant wages and higher taxes reduce spending.