Fergie's Tech Blog

TJX Profit Down Sharply on Breach Costs

An AP newswire article by Mark Jewell, via The Seattle-Post Intelligencer, reports that:

TJX Cos. on Tuesday said its second-quarter profit was cut by more than a half as the discount store operator recorded a $118 million charge because of costs from a massive breach of customer data, mostly to build up a reserve to cover estimated future expenses.

The owner of about 2,500 stores including T.J. Maxx and Marshalls also expects to record future breach-related charges of an additional $21 million - costs that analysts said are easily manageable for a firm posting strong sales despite the data theft and tough times for retailers.

posted by Fergie @ 8/14/2007 06:02:00 PM