Target stock tumbles after CEO resigns

BY Sam Lane  May 5, 2014 at 2:23 PM EST
Photo by Joe Raedle/Getty Images

Photo by Joe Raedle/Getty Images

Target’s stock fell about 3 percent Monday after news its president and CEO Gregg Steinhafel had stepped down.

Steinhafel’s resignation comes five months after a massive holiday-season data breach that resulted in stolen credit and debit card information from about 40 million customers.

Steinhafel had been with Target for 35 years and became CEO in 2008.

“The last several months have tested Target in unprecedented ways,” Steinhafel, who also gave up his position on the company’s board of directors, wrote in his resignation letter. “From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused than ever on delivering for our guests … With several key milestones behind us, now is the right time for new leadership at Target.”

The letter said Steinhafel’s resignation came after “discussions” with the board.

According to the Associated Press, the company’s sales, profit, and stock price have all taken hits since it disclosed the breach.

Chief Financial Officer John Mulligan will serve as interim president and CEO of the Minneapolis-based Target. A company spokeswoman declined to give specifics on how the resignation decision was reached.