Quarterly sales for Target reported a decline for the first time in six years — with the company blaming their Pride collection for the sudden slump.
Sales at stores that have been open for at least a year fell 5.4 percent in the quarter, including a 10.5 percent online dip.
The company was also forced to cut its annual sales forecast, blaming the backlash it received for its LGBTQ+ collection — including a “tuck-in-friendly” swimsuit for kids.
In addition to sales, Target’s visitor numbers fell 4.8 percent last quarter, with analysts blaming “a function of a mix that skews too discretionary, as well as the problems with Pride merchandise.”
Target’s revenue for the three-month period ended July 29 was $24.8 billion — 4.9 percent lower than last year.
The company was also forced to cut its annual sales forecast, blaming the backlash it received for its LGBTQ+ collection — including a ‘tuck-friendly’ swimsuit for kids
In addition to the sale, Target’s foot traffic fell 4.8 percent last quarter, with analysts blaming “a function of mix skewing too discretionary, as well as Pride merchandise issues.”
It’s also worse than the company predicted, dropping nearly $14 billion after the Pride Month controversy.
Millions pledged to boycott the company after the campaign, with several stores moving their displays to smaller spaces in the back.
The Pride product selection includes a variety of clothing and homewares, including an adult lime green bodysuit with the word “gay” on the back and a mug with a label that reads, “Gender Fluid.”
Others criticized it for featuring clothing designed for children and infants, including a label advertising its “pleat-friendly construction” and “extra crotch” coverage. The design is made to hide a person’s genitals.
Stock for Target fell 27 percent over the past year, and earnings beat Wall Street expectations.
Brian Cornell, who has served as Target’s CEO since 2014, told the Wall Street Journal, “As we navigate an ever-changing operational and social environment, we’re applying what we’ve learned.”
Rather, he defended the controversial line, saying they were desperate to avoid a “Bud Light situation.”
Target unveiled its Pride Month collection in early May, just after the Bud Light Dylan Mulvaney controversy.
Target has been supporting Pride – which is celebrated throughout the month of June – every year since 2013
Target marks Pride Month in June by creating sections in its stores for its specialty item lines
The Pride collection also includes items for babies and children. Many of the pieces are emblazoned with slogans and feature the rainbow colors of the Pride flag
Erik Carnell is the British designer behind Abprallen, an LGBTQ brand that sells t-shirts, sweaters, bags and badges
Anheuser-Busch last month blamed the “volume drop” on Bud Light’s loss after announcing that they had lost a whopping $390 million in US sales in the wake of their partnership with the trans influencer.
Figures showed that overall sales in the US were down in the period April-June by 10.5 percent compared to a year earlier.
The world’s largest brewer said sales to US retailers were down 14 percent, adding it was “underperforming the industry.” This was a direct result of the tie-in with Mulvaney.
For the second quarter of 2022, Anheuser Busch sold $2.73 billion worth of beer to retailers. But for the second quarter of 2023, sales fell to $2.35 billion — a slump of $390 million in a year.
The backlash against Target began shortly after the Mulvaney controversy, and they were also criticized for partnering with Erik Carnell, a British designer behind Abprallen, an LGBTQ brand that sells t-shirts, sweaters, bags and badges.
Other items for sale in the Abpralle Etsy shop are sinister. Stickers and badges that denigrate “cis feelings” – the feelings of non-trans people – and Fox News is one of them
Anheuser-Busch, the parent company of Bud Light, has seen its market cap drop by $27 billion after a disastrous partnership with transgender influencer Dylan Mulvaney
Anheuser-Busch lost a whopping $395 million in US sales after teaming up with transgender influencer Dylan Mulvaney in April
These include badges with slogans such as ‘Satan Respects Pronouns’, ‘Young, Queer and Willing’ and a lighter pin with the words ‘burn down the cis-tem’.
He also models the “Satan respects pronouns” T-shirt on an Instagram page while wearing BDSM style horns and no pants.
In a bio on the brand’s website, he says he has always been fascinated by the “frightening and mystical.”
Despite the losses, Target will still be celebrating Pride Month in 2024 with a collection, though executives told The Journal it will be a “more focused range of merchandise.”
In 2014, Target publicly endorsed marriage equality, and the following year announced it was ending their policy of dividing certain products, such as toys, by gender.
Target also introduced a gender-neutral line for kids, announcing in April 2016 — amid a nationwide debate over bathroom access — that transgender people were free to use any bathroom they wanted.
A backlash ensued, and Target spent $20 million in August 2016 to add private bathrooms to each of its stores.