NEW YORK (AP) – Target reported a 3.1 percent gain in third-quarter profits to beat Wall Street expectations as its U.S. business rebounded from a massive data breach that occurred just before Christmas last year.
The results are encouraging as the discount retailer gears up for the holiday shopping season, a year after last year’s data breach sent potential customers elsewhere.
It was a major factor in the ousting of CEO Gregg Steinhafel in May. Former PepsiCo executive Brian Cornell took over in August, but he is now tasked with keeping the momentum going and reclaiming the retailer’s image as a purveyor of cheap chic fashions and home decor.
Cornell must also salvage Target’s botched entry into Canada, which has been a big drag on profits.
Target is now playing catch-up, particularly with Amazon.com, and has put into place a service that allows people to order online and pick up goods at a store. It is also cutting down shipping time by using its network of stores to accommodate online shopping.