Target says it earned $520 million -- 81 cents per share -- for the three months that ended Feb. 1, compared to $961 million a year earlier -- $1.47 per share. Revenue fell to $21.5 billion from $22.7 billion.
Revenue at stores open at least a year fell 2.5 percent. Analysts had expected a profit of 80 cents on revenue of $21.5 billion, according to FactSet estimates.
Target's shares rose nearly 4 percent, or $2.19 to $58.70 in premarket trading Wednesday as the earnings beat Wall Street estimates by 1 cent.
The breach that compromised 40 million credit and debit card accounts between Nov. 27 and Dec. 15 was disclosed to customers on Dec. 19. In early January, the company revealed hackers also stole personal information from potentially 70 million customers.
"Clearly, we are accountable and we are responsible, but we are going to come out at the end of this a better company and we are going to make significant changes, that's what you do when you go through a period like this, you have to learn from it and you have to apply those learnings" Target CEO Gregg Steinhafel said in a CNBC interview in January.