Retailer Target said Tuesday (Aug. 5) that it expects to incur gross expenses of $148 million from its data breach. As a result, Target decreased its estimates for the second quarter earnings per share. The retailer said those expenses could be partially offset by $38 million in insurance receivable.
Comparable store sales are projected to be flat while Canadian sales should be lower than initially expected because of higher expenses related to inventory management.
Target shares dropped 4.4% on the lower guidance to close Tuesday at $58.03, down $2.67.
Target will report earnings on Aug. 20. Wall Street consensus is 91 cents a share, down from 97 cents a year ago. Revenue is expected to grow 2% to $17.47 billion.