Target Corp.'s (TGT) share value decreased a little over 9% in one year. The company experienced one of the largest breaches ever of American consumer data during the holiday season with as many as 40 million customers' credit and debit card information becoming exposed to hackers. Such events, especially where consumers' financial matters are concerned, can leave an irreparable dent on the company's image. While dealing with that image is a future concern, presently Target is preparing for a Minnesota court hearings where all of the 33 lawsuits filed against it will be discussed.
Banks will be hitting the company hard, seeking reimbursement for millions of dollars in losses due to fraud and the cost of card replacements. Apart from external events, the performance of the company hasn't been too impressive lately. In this article, we will be going through Target's fiscal year 2013 and then I'll talk
The Market Vectors Retail (RTH) is an ETF that tracks the performance of 25 of the largest U.S.-listed publicly-traded retail companies, which include Wal-Mart Stores (WMT) and Target Corporation (TGT). As you can see in the price chart below, the ETF was strong throughout the holidays, but began to drop after dismal same-store sales reports were announced in February.(click to enlarge)
RTH data by YCharts
RTH rebounded in March, but then began to decline in April as March same-store sales reports continue to show same-store sales declines. Why? Easter.
Easter is a big holiday for most retailers. In fact, it's the first major holiday in the year after St. Patrick's Day, but St. Patrick's Day is the same day every year, whereas Easter is a roving holiday. The Council of Nicaea (A.D. 325) decided that Easter would be the Sunday following the full moon that