Target (NYSE:TGT) announced its second quarter results include a gross expense of $148 million related to the December 2013 data breach. Simultaneously, the retailer was reported to have opened a technology hub in Silicon Valley.
It has been eight months since Target first revealed a data breach that compromised millions of customers' information. These expenses, offset partially by a $38 million insurance receivable, will pay for breach-related claims, including claims by payment card networks. For shareholders, that amounts to 11 cents cost per share in the second quarter.
"Since the data breach last December, we have been focused on providing clarity on the company's estimated financial exposure to breach-related claims," said John Mulligan, interim president and CEO, CFO, Target. "With the benefit of additional information, we believe that today is an appropriate time to provide greater clarity on this topic."
Mulligan continued the report on a more optimistic note.
"With last week's announcement that the board has chosen Brian Cornell as Target's next chairman and CEO, we are excited to welcome Brian to the team and committed to working together to accelerate Target's transformation and become a leading omnichannel retailer," he said.
Also reported today was the opening of a technology hub in Sunnyvale, California, to help the Minneapolis-based retailer explore new digital operations, reported the Minneapolis/St. Paul Business Journal. The hub employs 15 people and is geared toward data analytics and engineering for both online and mobile.
Last year, Target opened a technology innovation center in San Francisco to help the retailer find partners for tech ventures.
-See this Target press release
-See this Minneapolis/St. Paul Business Journal article
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