As per media reports, specialty retailer
) is laying off 475 employees worldwide and will no longer fill
up about 700 vacant positions to reduce costs. Earlier,
J. C. Penney Co., Inc.
) had announced layoffs as part of their cost-cutting
Notably, the jobs losses at Target are proportionately less when
compared to its workforce of nearly 360,000 and the 2,000 and
2,500 job cuts at J. C. Penney and Macy's, respectively.
Of late, Target has been in the news due to a massive security
breach. The company's stock price hit a 52-week low of
$58.75 on Jan 22, 2014. Since the announcement of the breach,
Target has lost 5.1% of its market capitalization.
Target faced its worst security breach when information related
to credit and debit card holders were hacked. The theft occurred
during the holiday season, from a day before Thanksgiving up to
Dec 15. The company publicly recognized the breach four days
later on Dec 19, 2013.
Recently, as part of the ongoing inquiry, Target had disclosed
that the data theft included names, mailing and email addresses
as well as phone numbers. Notably, the company has extended help
to aggrieved customers by offering one year of complimentary
credit monitoring and identity theft safeguard. Target's
customers have three months to register for the program.
Target trimmed its fourth-quarter fiscal 2013 guidance and now
expects adjusted earnings per share for its U.S. segment in the
range of $1.20 to $1.30, compared with the previous projection of
$1.50 to $1.60. Further, comparable-store sales are expected to
decline 2.5% in the fourth quarter as against flat comps
Currently, Target carries a Zacks Rank #5 (Strong Sell). Other
better ranked stock in the retail sector includes
Barnes & Noble, Inc.
), which carries a Zacks Rank #1 (Strong Buy).
BARNES & NOBLE (BKS): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
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