Target warns in filing that data breach could be worse than reported so far

Target (TGT) warned that last year's security breach could have been more extensive than reported so far and lead to further losses, the retailer discloses today in its annual 10-K filing.

TGT says it cannot predict the length or extent of any ongoing impact to sales, or how long it might take to restore the company's reputation in the wake of the breach.

So far, TGT has said ~40M payment card records were stolen along with 70M other customer records.

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Comments (13)
  • Billyspeed
    , contributor
    Comments (204) | Send Message
    Drip, drip, drip.....This Board and management cannot get a handle on this slow developing disaster. Their ineptitude is stunning. While the breach itself was very badly handled, the post breach PR has been even worse. The CEO needs to go.
    14 Mar 2014, 05:42 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (2170) | Send Message
    I was unfortunate enough to buy TGT in November @$63. Fortunately, it's less than 2% of our portfolio. My concern about the breach has kept me from buying more, even back when the current yield hit 3% (just about unheard of with this stock).


    I'm going to let my holding ride and just watch/wait.
    14 Mar 2014, 05:47 PM Reply Like
  • Billyspeed
    , contributor
    Comments (204) | Send Message
    The first loss is the best loss. Sell it.
    14 Mar 2014, 06:36 PM Reply Like
  • kevinconway
    , contributor
    Comments (2755) | Send Message
    Th breach is child's play compared to the implications for the Canada disaster...but it serves as a handy diversion from this massive screw up.
    14 Mar 2014, 05:49 PM Reply Like
  • 6869451
    , contributor
    Comments (49) | Send Message
    This is death by a thousand cuts.


    Unfortunately, I originally went long in the low $70s but added to my position several times in the $60's and high $50's. (I've learned my lesson now about how important entry price is to long term returns already) I'm now definitely overweight with an average cost around $63, but I hope in the grand scheme (20+ year timeline) this will be only a blip.


    I completely agree that the management has been inept about handling the data breach and Canada. I can only hope that as shareholders we can vote to show them the door and get some more adept talent at the helm.


    TGT is now about 8% of my portfolio, my goal was originally at most 5% :( Would it be wise to buy more if it took another major dip (eg low $50s)? Fundamentally, I don't think the long term thesis has changed. I feel like Target is still the B&M retailer of choice for anyone who doesn't want to shop at WMT. I recently dumped WMT. TGT has a lot more room for growth (if properly executed) and their customers are more well off, less likely to be affected by the stagnant economy.
    14 Mar 2014, 06:03 PM Reply Like
  • Billyspeed
    , contributor
    Comments (204) | Send Message
    It's dead money at best. Take the loss and move on.
    14 Mar 2014, 06:37 PM Reply Like
  • movies555
    , contributor
    Comments (1462) | Send Message
    It would be one thing if it was, "We had everything in place, we did everything we could." Now it becomes, "We didn't have everything in place AND ignored/sat on our hands when we were warned about the situation."


    It is surprising that there haven't been tons of lawsuits. Target isn't going anywhere, but this certainly isn't over. Canada is a problem too - I'd ask if Target had any sort of real international expansion plan, but they don't seem to be even doing that well in Canada, so...


    Also, fun fact: The CEO's family runs Steinhafel's, a Midwestern furniture store (which is a nice place to shop.)


    I do like shopping at Target, but I think I'll be limiting it (at best) for a while, the more comes out about this situation.
    14 Mar 2014, 06:19 PM Reply Like
  • a7lewis
    , contributor
    Comments (32) | Send Message
    The revelation that they actually had intrusion detection that worked, but was ignored or overlooked, certainly raises a concern for more losses due to legal action. But that won't be a headache forever. I'll be more concerned however if they can't solve Canada. Hard to see much long term future growth if they can't make inroads into what would have to be the easiest country for a US company to move into.
    15 Mar 2014, 01:04 PM Reply Like
  • gap123
    , contributor
    Comments (295) | Send Message
    I share the sentiment of current management. However, I would not sell the stock, in fact, would be adding to it! TGT is a major holding for many large institutions and will be supported. The divi will prob be increased in light of this. Long run, this is a minor blip.
    14 Mar 2014, 08:38 PM Reply Like
  • Billyspeed
    , contributor
    Comments (204) | Send Message
    As long as you're OK with waking up one morning and watching it trade at $50 or lower, keep it and that's definitely possible.
    14 Mar 2014, 08:53 PM Reply Like
  • D.B. Kim
    , contributor
    Comments (147) | Send Message
    Gregg W. Steinhafel CEO @TGT made $21 million last year... sends his CTO to take the knife, when she probably walked out saying "i told you so"...meanwhile, instead of going public, they just hide the dirt deep in the 10-k like Congress does and hopes nobody actually reads it.... Americans need to wake up.... they want to make Wall Street into villains... but what happens when a CEO of a major retailer knows about a security breach and decides to do nothing and a bad guy walks away with personal information of 70 million customers....? Really he should go to jail.
    14 Mar 2014, 09:48 PM Reply Like
  • CapeCapMgmt
    , contributor
    Comments (1903) | Send Message
    I have been adding to my position on a quarterly basis. The security breach shall pass in due time, but in the meantime, it has provided me with a wonderful opportunity to add to my position.
    Target is a Great company and I certainly anticipate they will be running strong in Canada, as well as other markets in the very near future.


    Long: TGT and WMT
    15 Mar 2014, 09:34 AM Reply Like
  • Rich in NJ
    , contributor
    Comments (88) | Send Message
    I would be a buyer at $50.
    15 Mar 2014, 11:46 AM Reply Like
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