Target’s sales plummet following backlash over Pride support.

Target’s Sales Decline⁣ After Backlash to ​Pride Month Collection

Target’s quarterly ‍sales have taken a hit, falling 5.4% in the second quarter compared to⁢ last year, according to⁤ the company’s second quarter earnings report. Online sales ‍saw an even greater decline of 10.5%. The number of transactions and ⁢average transaction amount also dropped. Target’s‍ total revenue of $24.8 billion ⁣was 4.9% lower ⁤than ‌the previous year.

Backlash Over⁢ “Pride” Collection

In May,‌ Target faced backlash over its “Pride” ⁢collection, which ‍included ​a kids swimsuit with a tag promoting inclusivity. The collection also featured LGBT-themed books for young children and an adult line with items like “tuck-friendly” swimsuits and apparel with ⁤bold statements. ‌This sparked calls for ⁤a boycott on social media, leading Target to remove ​some merchandise and relocate displays to ensure employee safety.

Adjustments and Future Plans

Target’s​ chief growth officer, Christina Hennington, acknowledged the impact of the backlash​ on sales and stated ⁤that it serves as a signal for the company to pause, adapt, and learn. In⁢ response,⁤ Target plans to make changes to its ​”Pride” ⁤collection next year, including timing, ​store placement, and brand ‍selection.

Profit Margins and Industry ‌Backlash

Despite ⁣the decline⁤ in sales, Target’s latest earnings report revealed higher ‍profit margins than expected due to reduced discounts and inventory costs. Other companies, such‌ as Bud Light’s parent company Anheuser-Busch, also faced backlash over their “Pride” merchandise this summer, resulting ⁣in significant sales‌ losses.

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