Target cuts annual profit outlook as the discounter continues to reel from breach

Markets Associated Press

Target has slashed its annual profit outlook as the retailer continues to reel from a massive data breach, a disappointing expansion in Canada and sluggish sales in the U.S.

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The nation's third-largest retailer also said Wednesday that its second-quarter earnings dropped 61.7 percent.

The Minneapolis-based company says it earned $234 million, or 37 cents per share, in the quarter that ended Aug. 2, compared with earnings of $611 million, or 95 cents per share, a year earlier.

Revenue rose 1.7 percent to $17.4 billion, slightly above the $17.38 billion estimate from FactSet.

Excluding expenses related to the breach, the company earned 78 cents per share, which was in line with Target's reduced estimate issued earlier in the month.

Analysts had expected 79 cents per share, according to FactSet.