Target CIO Quits As It Bolsters Security

Beth Jacobs, Target Corp. chief information office has resigned as the company overhauls security practices, according to published reports. On December 19, 2013, Target announced that hackers had compromised 40 million of its customer’s credit and debit card accounts.

The company will seek an interim CIO, the reports stated.

On February 4, Target CFO John Mulligan, appearing before the Senate Committee on the Judiciary in Washington, D.C., and told it that the company would accelerate implementation of smart card technology designed to reduce the threat of credit and debit card fraud attempted in its stores, the company announced.

On February 26, in comments on the company’s fiscal 2013 results, Target CEO Gregg Steinhafel said, the company’s “results softened meaningfully following our December announcement of a data breach. As we plan for the new fiscal year, we will continue to work tirelessly to win back the confidence of our guests and deliver irresistible merchandise and offers, and we are encouraged that sales trends have improved in recent weeks.”

For the full-year, Target net earnings were $1.97 billion, or $3.07 per diluted share, versus $3 billion, or $4.52 per diluted share, in fiscal 2012. Sales were $72.6 billion versus $72 billion in the fiscal year prior, the company reported. Target blamed the data breach and challenges associated with opening its Canadian division for the soft results.