Target sales drop 46 percent following security breach
VAR_Staffing / VAR Staffing
A network security breach is something that no company wants to become the victim of. Aside from the possibility of losing company and customer information, the potential for identity theft and spending time and resources to fix the problem, there is also the damage that can be done to a company’s reputation.
This blog has been covering the Target security breach that occurred during the holiday shopping season since it was announced in December. It resulted in the personal and credit card information of an estimated 110 million customers being compromised. However, it also had a major impact on consumers’ confidence in shopping at the major retailer.
According to an article from the New York Times, Target reported its fourth quarter earnings this week, which came in at $520 million. While that is a strong number, it is down 46 percent from the same time period last year which brought in $961 million.
“During the first half of the fourth quarter, our guest-focused holiday merchandising and marketing plans drove better-than-expected sales,” Gregg Steinhafel, Target’s chief executive, said in a statement. “However, results softened meaningfully following our December announcement of a data breach.”
To make matters worse, the company reported $61 million in pretax expenses related to the breach, and that number could grow the if there is future litigation, fraud claims and investigative fees.
A single network security breach is costing Target dramatically and it could get worse. This is why every business needs to ensure it has a strong security system in place. Specialized IT solution providers that are partnered with VAR Staffing can provide the impactful talent that is needed to combat cyber criminals.