Data-breach takes toll on Target profits

US discount retailer Target says sales fell 5.3 per cent as a massive data breach over the holidays scared off customers.

Target Corp says the massive data breach over the holidays helped push its profit down 46 per cent.

The US discount retailer said on Wednesday that sales fell 5.3 per cent as the breach scared off customers.

Target says it earned $US520 million ($A578 million), or 81 cents per share, for the three months that ended February 1. That compares with a profit of $US961 million, or $US1.47 per share, a year earlier.

Revenue fell to $US21.5 billion from $US22.7 billion.

Revenue at stores open at least a year fell 2.5 per cent.

Analysts had expected a profit of 80 cents on revenue of $US21.5 billion, according to FactSet.

The company also offered a profit outlook for the current quarter that is below Wall Street estimates.