Target market cap losses hit $15.7 billion, shares approach 52-week low amid woke backlash

Target’s market cap has fallen over $15.7 billion since backlash to decisions surrounding LGBTQ Pride merchandise caused the stock to fall again on Monday.

Target’s market cap has fallen over $15.7 billion amid backlash to decisions surrounding LGBTQ Pride merchandise as the stock dropped another 0.4% on Monday.

Target’s market value was over $74 billion before the Pride displays made national news, as tracked by Dow Jones Market Data Group. The retailer initially irked conservatives with Pride displays that featured items such as assorted children’s apparel and "tuck-friendly" women's swimsuits, but some in the LGBTQ community also became outraged when the displays were dialed back ahead of Pride Month. 

Shares fell to $126.48 when the market closed Monday after eclipsing $161 just last month. Three Wall Street firms have since downgraded the shares on concerns over slowing sales. Target shares are just shy of a 52-week low of $125.08.

ROGAN ROASTS TARGET, BUD LIGHT FOR LOSING BILLIONS FROM BACKLASH: 'STOP SHOVING THIS DOWN EVERYBODY’S THROAT'

Citi analyst Paul Lejuez lowered the stock on Friday to neutral from buy and pitted the troubled retailer against rival Walmart, which Lejuez said would begin gobbling up market share.

Considering the competitive landscape, "We believe Walmart is likely to continue gaining market share, and Target's high exposure to discretionary sales will not serve them well in the current macro backdrop," Lejuez said in a note.

"Despite the recent stock pressure, we cannot recommend investors buy the stock given these dynamics and now believe the risk, reward is more balanced, but risk is more to the downside near term," he continued. 

Lejuez also highlighted Target's 13.9%-drop in store traffic the final week in May as inflationary pressures subdued consumer spending over Memorial Day weekend. This drop coincided with the Pride controversy making national news. 

TARGET SHARES DOWNGRADED AGAIN ON SALES CONCERNS

Also last week, KeyBanc Capital Markets 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 also downgraded Target's stock earlier this month, with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.

LGBTQ ADVOCATE SCOLDS TARGET’S ‘RAINBOW CAPITALISM,’ SAYS IT MISSED OPPORTUNITY AFTER PULLING PRIDE DISPLAYS

Target confirmed "adjustments" to the Pride merchandising plans were underway in May 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 told by the corporation to move LGBTQ Pride merchandise away from the front of their locations after customer outrage to avoid a "Bud Light situation."

Target has said the displays were dialed back to protect employees against threats from angry customers. 

Fox Business’ Joe Toppe contributed to this report. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.