NEW YORK — Target cut its annual profit outlook Wednesday and said its first-quarter earnings fell 16 percent as it took another hit from a massive customer data breach and a troubled expansion in Canada.
The third-largest US retailer, based in Minneapolis, also issued a second-quarter profit projection below analysts’ expectations. Target Corp. said it does not expect its six straight quarters of traffic declines to reverse this year in what analysts say is the most tumultuous time in its history.
There are some encouraging signs. A key revenue metric improved after tumbling shortly after the breach, which compromised the credit card and personal information of millions of customers.
But Target accomplished that by stepping up discounts, which squeezed profit. Target earned $418 million, or 66 cents per share, in the quarter ended May 3. That compares with $498 million, or 77 cents per share, a year earlier.