Today, Target announced updates on our continuing investigation into the recent data breach and our expected fourth quarter financial performance.
New Details about the Data Breach Investigation
As part of Target’s ongoing forensic investigation, it has been determined that certain guest information—separate from the payment card data previously disclosed—was taken from Target. This theft is not a new breach, but was uncovered as part of the ongoing investigation. At this time, the investigation has determined that the stolen information includes names, mailing addresses, phone numbers or email addresses for up to 70 million individuals.
Much of this data is partial in nature, but in cases where Target has an email address, we will attempt to contact affected guests. This communication will be informational, including tips to guard against consumer scams. Target will not ask those guests to provide any personal information as part of that communication. In addition, guests can find the tips at Target.com/databreach, along with updated information in the Data Breach FAQs to help answer questions and provide additional resources.
“I know that it is frustrating for our guests to learn that this information was taken and we are sorry they are having to endure this,” said Gregg Steinhafel, chairman, president and chief executive officer. “Our guests expect more from us and deserve better. And I want them to know that understanding and sharing the facts is important to me and the entire Target team.”
Guests will have zero liability for the cost of any fraudulent charges arising from the breach. To provide further peace of mind, Target is offering one year of free credit monitoring and identity theft protection to all Target guests who shopped our U.S stores. Guests will have three months to enroll in the program. Additional details will be shared next week.
We remain focused on addressing our guests' and team members' questions and concerns about the data breach. Please continue to check the Data Breach Issues Hub for updates as additional information becomes available.
Update on Fourth Quarter Outlook
The company also provided an update to its expected fourth quarter 2013 financial results. In our U.S. Segment, Target now expects fourth quarter 2013 adjusted EPS of $1.20 to $1.30, compared with prior guidance of $1.50 to $1.60. This outlook anticipates a fourth quarter 2013 comparable sales decline of approximately (2.5%), compared with prior guidance of approximately flat comparable sales. The updated sales expectation reflects stronger-than-expected fourth quarter sales prior to the Company’s Dec. 19, 2013 announcement of a payment card breach, meaningfully weaker-than-expected sales since the announcement, which have shown improvement in the last several days, and a comparable sales decline of (2)% to (6)% for the remainder of the quarter. View the press release to learn more.
After careful consideration of each location’s financial performance, Target also announced today that we plan to close eight U.S. stores on May 3, 2014. The stores affected by this announcement are located in:
West Dundee, Ill.
North Las Vegas
Orange Park, Fla.
Eligible team members at these stores will be offered an opportunity to transfer to a similar position at a nearby Target location.
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