Amid continuing backlash over an LGBTQ-friendly children’s clothing line, Target has seen $13.8 billion in market capitalization wiped out as its stock has hit its lowest levels in almost three years.
On Wednesday, shares fell 2.2% to $130.93 after eight straight sessions of losses, the longest losing streak the stock has seen since November of 2018. The company has been left with a market capitalization of $60.4 billion.
That is 19% below where the stock sat just two weeks ago, on May 18th, when shares were trading for $160.96 before the crisis began. It is the lowest the shares have traded for since the depths of the pandemic in mid-2020.
The losses have been caused by an ongoing boycott over Target’s sales of “PRIDE,” an LGBTQ line of clothing which features children’s clothing, and “tuck-friendly” women’s swimsuits, with “extra crotch coverage,” for transgender biological men who wear them and wish to conceal their male genitalia.
Traders fear Target is about to suffer the same fate as Anheuser Busch, which has seen sales of Bud Light beer fall off more than 25% after the brand launched an ad campaign featuring a transgender influencer.
Edward Jones analyst Brian Yarbrough said, “Investors are concerned that Target may be experiencing a sales decline because it’s alienated some of its core customers.”
Yarbrough said investors were selling their shares due to the, “assumption that Target might have to lower its earnings guidance because its sales and profitability has been impacted,” adding the boycott could last for the next twelve months.
Other items Target offered which have drawn customer’s ire include a onesie for infants which says, “Bien Proud,” a children’s book titled, “Twas The Night Before Pride,” and a number of T-shirts with slogans with LGBTQ themes, such as “live laugh lesbian.”
Figures on the political right have accused the retailer of grooming children, with an alt-right rapper named Forgiato Blow penning a chart-topping iTunes rap song titled, “Boycott Target.”
“Attention all shoppers, there’s a clean up on every aisle. Target is targeting your kids,” Blow raps in the song’s opening line.
In response, the retailer has announced it will remove items from the “PRIDE” line from its stores, citing “volatile circumstances,” and “significant confrontational behavior.”
Prior to the collapse in share price, Target’s CEO Brian Cornell had defended the “PRIDE” line, noting that marketing such a line during Pride Month was, “a good business decision.”
He added, “It’s the right thing for society, and it’s the great thing for our brand.”
