Some predictions do come true.
The question raised in this September post, “Will 2013 Be the Year Cybersecurity Crashes the Party in the Boardroom?” was late happening. Then on December 17th, in the midst of retail’s most critical sales season, reality crashed through Target’s boardroom in the form of one of the largest credit card heists in history.
Following the loss of credit card information belonging to 40 million customers and personal data of another 70 million customers, Target now faces massive expenditures to remedy the breach and shore up its cyber defenses to prevent repeat thefts in the future.
Dealing with such remedial action is not coming cheaply. According to the February 27th issue of The Wall Street Journal, Target’s fourth quarter profit fell from nearly a billion dollars a year earlier to just over $500 million in 2013’s fourth quarter, knocking nearly two billion dollars from its market capitalization.
But such financial shortfalls are just the beginning of Target’s troubles. Here are three more dampers on the company’s financial picture: