How Did Data Breach Impact Target's Earnings?

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Feb. 26 (Bloomberg) -- Bloomberg's Julie Hyman and Michael McKee report on retail and the impact of Target's data breach on earnings. They speak on Bloomberg Television's "In The Loop." (Source: Bloomberg)

American consumer.

Truly, tell us about target.

It is kind of hard, right, because the data breach is part of the problem.

Definitely part of the problem.

Not only are the costs tied to the exact data breach, but fewer people wanted to go to target because of them hearing about what happened.

The company said today that it is not sure what the possible loss is, the range of possible losses are related to these issues.

Difficult for them to estimate, because there are costs directly tied to it, costs -- it ties to the whole issue that american consumers are not shopping is much as they were before.

You asked how americans were feeling good they are feeling cold and wet.

You talk about stuff that goes into gdp -- leave out gas prices and things like that.

This chart goes up and up and up and it flattens out over the last month or so, it has gone down.

Unusual to see a trend like this.

It tells you that something is going on out there.

A lot of people say that it could be a little bit of the target hacking thing, but mostly people think it is the weather.

You saw that reflected in yesterday's earnings report from macy's. 234 stores closed at one time or another over the quarter.

It has been a real problem for people getting out to shop.

Think about the little mom-and-pop stores that can't even shovel the walk.

If it is the weather factor, does not spell good news for the rest of the year?

In theory, or at least relatively good news.

Even during the holiday season, before the real snow said in, most of it came in january.

Macy's has performed relatively well, but the rest of the retailers were having some trouble.

Now that weather is behind us, we will get a more accurate picture of what is really going on and whether things are coming back or not.

One of the small positives that may have happened from all of that weather is that the retailers were able to clear out their cold-weather inventory.

There is higher demand.

They are going into spring with more reasonable, later inventory and hopefully we get a better idea of some demand for a. maybe there's something to what greg rayburn said to us, that perhaps the countries over--- the country is over- retailed.

That has been a problem for years.

People were saying we have too many stores could it is not so much the amount we're spending, it is what we are spending on.

The retail sales report reflects stores, but the mix has changed.

We are spending more on services unless on retail products are part of that is because we pay more in utility bills, two.

Abercrombie says today it will be closing 60-70 of its u.s. stores.

Over-retailed.

Thank you, julie hyman and mike mckee.

Moving and shaking this hour, j. crew ceo mickey drexler, whose company may go public this year.

According to people familiar with the matter, that clothing chain is talking to banks about an ipo.

Pbg and leonard green and partners bought j. crew for $2.6 billion.

Since then, drexler has increased the number of stores and expanded to london and hong kong.

J.crew might be valued at up to $5 million at a public offering.

The timing might be right.

The retail index is up 35% in just the last year alone.

John paulson could be getting set to deepen his investment in retail.

The hedge fund is in talks to

This text has been automatically generated. It may not be 100% accurate.

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