Target (TGT) bests profit estimates as inventory and expense management help it overcome a tough quarter for store traffic in the U.S. and Canada.
The retailer reports comparable-store sales fell 2.5% in the U.S. during Q4.
Profits took a large hit from the data breach reported in December. Insurance has covered $44M of the $61M in charges related to the breach so far, but the story is still unfolding.
The performance of Target in Canada was under-whelming as costs ran up higher than anticipated and sales lagged the rosiest estimates.
The company warns of a material adverse effect from the data breach on the current year and future periods.
Shares of Target are up 1.1% in premarket action with expectations low and anxiety high for the period.