Target's data breach just got more expensive.
In a statement, the retailer said its second quarter earnings will include a $148 million charge related to losses regarding the massive data breach which occurred during last year's holiday shopping season.
The company said this estimate includes, "an increase to the accrual for estimated probably losses for what the Company believes to be the vast majority of actual and potential breach-related claims, including claims by payment card networks."
"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 of Target. "With the benefit of additional information, we believe that today is an appropriate time to provide greater clarity on this topic."
And in addition to increasing costs stemming from this data breach, Target also cut its second quarter earnings outlook.
The company said it expects adjusted EPS to be around $0.78, lower than then $0.85-$1.00 it previously expected.
Target said this outlook reflects flat sales in the U.S. and softer-than-expected sales in its Canadian segment.
In pre-market trading, shares of Target were down as much as 4%.
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