Target on Tuesday cut its second-quarter earnings estimate—citing increased costs related to last year's massive holiday data breach, and higher promotions and discounts in North America.
"I don't think anybody cares so much about what the data breach is costing them except for the sales it might be costing them," said Jan Kniffen, chief executive of retail research and consulting firm J. Rogers Kniffen Worldwide Enterprises.
The former department store executive told CNBC's "Squawk Box" the real reason behind the retailer's earnings warning is "bad sales, bad gross margins due to promotional markdowns and the continuing train wreck in the Canadian segment."
On the news, the stock opened sharply lower on Wall Street. (Click here for the latest quote.)