Target losses hover around $13 billion as shareholders bear brunt of woke backlash
Target faces backlash from both conservatives and the LGBTQ community
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Target shareholders continue to bear the brunt of the big-box retailer’s Pride merchandising controversy, as the company's stock fell again on Thursday with the total loss in value hovering around the $13 billion mark.
Target finished down another 0.4% when the market closed, leaving shares worth $131.27 after eclipsing $161 just last month.
Since the backlash, Target's market cap has fallen roughly $13 billion to $60.06 billion as of Thursday's closing price. Target’s market value was over $74 billion before the polarizing Pride displays made national news, as tracked by Dow Jones Market Data Group.
Target initially irked conservatives with Pride displays that featured a plethora of children’s items, but outraged the LGBTQ community when the displays were dialed back ahead of Pride Month. The retailer recently suffered nine straight days of losses on the heels of backlash from both sides of the issue.
JPMorgan Chase & Co. downgraded Target stock from "overweight" to "neutral" last week, with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.
KeyBanc Capital Markets on Monday cut the retailer's shares to "sector weight" from "overweight" as the resumption of student loan payments stipulated by Congress' debt ceiling agreement poses a sizable headwind for discretionary spending for shoppers, which has an elevated discretionary sales mix and a younger, college-educated core consumer demographic.
JPMorgan Chase & Co. downgraded Target stock last week from "overweight" to "neutral," with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.
Target shares have fallen over 20% during the quarter as the retailer deals with the fallout from its Pride merchandising displays.
Last month, Target confirmed "adjustments" to the Pride merchandising plans were underway after Fox News Digital learned it rolled back displays at some of its locations. A Target insider told Fox News Digital that some Southern stores were forced by the corporation to move LGBTQ Pride merchandise away from the front of their locations after customer outrage to avoid a "Bud Light situation."
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The Pride merchandise continued to cause problems for Target when many LGBTQ advocates slammed the company for moving the merchandise. Democratic California Gov. Gavin Newsom even accused Target of participating in a "systematic attack" on LGBTQ communities across the country.
LGBTQ advocate Heather Hester scolded Target’s "rainbow capitalism" last week.
"Really what Target ultimately did was show that they were in this just for the money," Hester told Fox News Digital.
"Rainbow capitalism is essentially, you know, selling Pride products for profit and not necessarily standing behind the community with support," Hester continued. "That's what happened, right? There are a lot of things that go into that, but that is what happened at the end of the day."
Many Target locations across the country feature massive June Pride Month displays on an annual basis. (Brian Flood/FOX Business)
Target Pride swimsuits boast "tuck-friendly construction" and "extra crotch coverage," presumably to accommodate male genitalia, even if they are made in an otherwise female style. (Brian Flood/FOX Business / Fox News)
Target, which has supported LGBTQ Pride for years, this season offered merchandise that included female-style swimsuits that have the option to "tuck" male genitalia. Other products were labeled as "Thoughtfully fit on multiple body types and gender expressions." Target also sold a "Gender Fluid" mug, a variety of adult clothing with slogans such as "Super Queer" and a "Grow At Your Own Pace" saucer planter in addition to controversial items for kids including a coloring book that features same-sex couples kissing.
Separately, the retailer's Pride collection has been linked to controversial designer Erik Carnell of Abprallen, who is an outspoken Satanist, whose brand features occult imagery and messages like "Satan respects pronouns" on brand apparel.
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Additionally, Target gave at least $2.1 million to GLSEN, an organization that encourages school districts and students to implement guidance on how to hide gender transitions from parents.
Fox News’ Hannah Grossman and FOX Business’ Suzanne O’Halloran, Joe Toppe and Breck Dumas contributed to this report.
