Target shares plunge 2% as market cap down over $13 billion amid Pride backlash
Shareholders continue to bear the brunt of Target’s Pride controversy
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Target shareholders continue to bear the brunt of the big-box retailer’s Pride merchandising controversy, as the company fell another 2.03% on Monday.
Since the backlash, Target's market value has fallen over $13 billion to $60.24 billion as of Monday's closing price. Target’s market value was over $74 billion before the polarizing Pride displays made national news. Target initially irked conservatives with over-the-top 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.
Monday’s decline leaves shares at $130.52 per share. 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.
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)
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."
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."
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The retailer, 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.
The organization, GLSEN, has received at least $2.1 million in donations from Target, which offers districts and students guidance on how to hide gender transitions from parents.
Target’s next earnings report is scheduled for August 16.
Fox News’ Hannah Grossman, Fox Business’ Suzanne, O’Halloran, Joe Toppe and Breck Dumas contributed to this report.
