Target quarterly profits to exceed expectations despite data breach

Author:
Updated:
Original:

Piper Jaffray Cos. on Thursday increased its fourth-quarter sales estimate for Target Corp.

Piper said it now expects Target's same-store sales to increase by 1.5 percent for the quarter. That's an increase from its previous forecast of flat sales, even after the recent credit card data breach at the Minneapolis-based retailer.

According to the Minneapolis St. Paul Business Journal, Piper points to improved customer sentiment in December. The electronics category was particularly strong especially with the launch of the PlayStation 4 and Xbox One gaming consoles.

Piper said that consumers appear to have "responded well" to Target's holiday offerings.

Target offered shoppers a 10 percent discount the weekend before Christmas, after news of the massive data breach that affected nearly 40 million customer credit and debit cards.

Some affected customers have even filed lawsuits against Target.

Analyst Sean Naughton told the Associated Press even with those setbacks, Target was on track for its biggest gain in a year for the key sales measure. Naughton's prediction is based partly on Target allowing shoppers to buy things online then pick them up at the store, which he said was well received.

On the news, shares of Target closed out at $63.27 and the company's stock is up 8 percent over the last 12 months.

Next Up

Luis Arraez

Arráez's triple gives Twins rare extra-inning victory

The Twins scored three runs in the 10th to take Friday's opener.

court gavel

St. Cloud man sentenced after traveling to meet minor he solicited online

Nathan Paul Grondahl learned his fate in a federal court this week.

Kirill Kaprizov / Minnesota Wild

Report: Contract talks between Kaprizov and Wild have 'gone cold'

The report states Kaprizov is drawing interest from the KHL.

IMG_1266

Glensheen Mansion reveals new coffee bar - with fresh donuts

It's located in the historic Carriage House garage space

Bogdan Vechirko

Charges against trucker who barreled through protestors could be dropped

Bogdan Vechirko will have to avoid legal trouble for a year.

Dychaun Chew - South High School Facebook

Loved ones mourn 16-year-old killed in Minneapolis hit-and-run

South High School held a balloon release for Dychaun Chew Thursday evening.

police lights

5-year-old dies 3 weeks after assault, mother's charges upped to murder

The girl died three weeks after the assault took place.

Related