Target Corporation has been slapped with a striking demonstration of market forces in the wake of controversy over their Pride merchandise.
Target’s market valuation plummeted by $10 billion over the past 10 days. The precipitous drop follows significant backlash against the retail giant’s introduction of a Pride-themed clothing line for children.
A mere ten days ago, Target’s stock was trading at a robust $160.96 per share. However, outcry over the company’s “PRIDE” apparel collection for children sparked calls for a boycott of the Minneapolis-headquartered retailer. The subsequent fallout resulted in the stock price nose-diving to close at $138.93 a share last Friday.
This dramatic decline, approximately a 14% tumble in value, equates to a staggering $10.1 billion loss in market capitalization. As a result, the overall valuation of Target, which boasts nearly 2,000 stores throughout the United States, dwindled to $64.2 billion.
This downturn marks the lowest point in Target’s stock price in almost three years. The last significant stock price drop of a similar magnitude occurred in 2022, as the stock adjusted following an extraordinary surge in the wake of the COVID pandemic.
Caught in the crossfire of America’s ongoing cultural disputes over gender norms, Target made the decision to relocate its Pride displays in certain Southern stores last week. This came after reports of protesters toppling the displays and confronting staff.
Target has committed to withdrawing select items from the controversial collection, although it has yet to clarify which items will be removed.
Among the collection, the items that drew the most public ire included “tuck-friendly” women’s swimsuits catering to transgender women who have not undergone gender-affirming surgeries, along with rainbow-themed clothing for children.
Some have drawn parallels between the conservative-led boycott of Target and a similar campaign against Bud Light, which experienced a precipitous drop in sales after collaborating with transgender influencer Dylan Mulvaney.
However, Texas Senator Ted Cruz expressed skepticism over whether the backlash against Target would have comparable effects.
During his podcast on Friday, the Republican senator observed that while there are plentiful alternatives to Anheuser-Busch’s products, the same cannot be said for Target.
Furthermore Cruz stated, “historically, conservatives have typically been not very good at boycotts,” suggesting that the campaign against Target could soon falter.
Despite the controversy and financial hit, Target’s CEO, Brian Cornell, stands by the decision to market the LGBTQ-friendly apparel. He defends it as being “the right thing for society.”
As of Sunday, Target has not responded to the New York Post‘s request for comment.