All eyes on Target earnings report

This week, several major retailers will be posting their earnings reports, but all eyes seem to be on Target. Even though it has been several months since the data breach, there are still plenty of customers who think twice about swiping their cards at the store.

In May, Target announced the surprise resignation of CEO Gregg Steinhafel, but that didn't seem to do much in the way of bringing back consumer confidence. Target's shares have dropped about 6 percent since the move.

Most investors assumed Steinhafel's departure was a result of the data breach, but there are also concerns that the company's sales and earnings may be disappointing due to a challenging retail environment.

The data breaches at Target and Neiman Marcus compromised the personal and financial information of millions of customers, but some financial security experts say the incidents were not entirely their fault, pointing out that retailers are told to accept credit and debit cards that have outdated security technology.

If Target's earnings report is bleak, they won't be alone. Wal-Mart's earnings posted last week were below expectations and store traffic was sluggish. The retailer blamed the unfavorable numbers on this past winter's severe weather.

Target is expecting to report earnings of 71 cents, down from 82 cents last year. Analysts have trimmed their earnings estimates by almost 20 percent over the past three months.

Interim CEO John Mulligan has stressed that customers are safe shopping at Target.


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