On Thursday Target shares took another tumble before stabilizing, as troubles continue to pile up for the embattled retailer over its embrace, and then seeming rejection of an LGBTQ-themed product line.
After being down for most of the session, and on track for the longest losing streak in 23 years as well as the 10th straight session of losses, shares closed fractionally higher. However they still remain near a three-year low of $131.16 per share.
On Thursday JPMorgan Chase & Co downgraded the stock from “overweight” to “neutral,” as its analysts predicted a decline in sales arising from customers confronted with persistent inflation.
Those worries were laid on top of the current struggles the retailer is undergoing as it deals with a backlash over its Pride marketing campaign, which features children’s clothing lines with LGBTQ-themed statements, as well as a “tuck-friendly” line of women’s swimwear designed to help biological males conceal their male genitalia while wearing them. Other items stirring controversy were clothing items labeled as “Thoughtfully fit on multiple body types and gender expressions,” as well as a “Gender Fluid” mug and clothing featuring statements such as “Super Queer.”
The retailer has since declared it would remove some of the items from its stores due to the backlash, though it did not specify which items it would remove.
In a statement, a spokesperson said, “For more than a decade, Target has offered an assortment of products aimed at celebrating Pride Month. Since introducing this year’s collection, we’ve experienced threats impacting our team members’ sense of safety and wellbeing while at work.”
The statement continued, “Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior. Our focus now is on moving forward with our continuing commitment to the LGBTQIA+ community and standing with them as we celebrate Pride Month and throughout the year.”