Nine-Month TJX Loss from Data Breach Could Hit $29 Million
The figure, while not trivial, is dramatically below some industry projections of billion-plus-dollar losses. Customer loyaltyand apathyis proving to be the key difference.TJX reported May 15 that, in the three months leading up to April 28, it spent $12 million dealing with the data breach the company announced in January. Thats on top of $5 million the company said it spent in the previous three months to deal with the breach. A TJX statement said the money spent "includes costs incurred to investigate and contain the intrusion, enhance computer security and systems, and communicate with customers, as well as technical, legal, and other fees." The latest quarterly cost comes to 3 cents per share. TJX advised investors that it expects to have to spend even more in the current quarter, perhaps another 2 to 3 cents per share, which would come to about another $8 million to $12 million. If that holds, it would total about $25 million to $29 million for that nine-month period.
Although some in the industry have projected hugemore than $1 billioncosts for TJX in connection with the breach, a large portion of those assumptions are based on guesses that TJX customers would sharply reduce purchases and that huge amounts of money would be spent contacting every potential victim. Thus far, both assumptions are not panning out.