Target shareholders suffered defeat again on Friday, with the large retailer’s shares down 3.26%.
The backlash sparked by the Pride controversy coincided with a stock market value lack of greater than $15 billion since mid-May.
The stock fell to $126.99 when the market closed after trading above $161 last month after a third-party Wall Street firm downgraded the stock amid concerns about slowing sales.
Because the controversy began, Target’s market capitalization has fallen $15 billion to $58.61 billion from Friday’s closing price.
Target’s market value was over $74 billion before Pride’s polarizing displays made national news, as tracked by the Dow Jones Market Data Group.
Target initially irritated Conservatives with Pride shows that featured items such as “slip-on friendly” women’s swimsuits, however the LGBTQ community was outraged when the shows were pulled ahead of Pride Month.
The vendor has suffered recently nine consecutive days of losses on the heels of opposition from either side of the difficulty and ended the week on one other losing streak.
Going into Friday, Target shares are down about 3.1% during the last five days, after falling about 18.5% within the last month. Already close to a three-year low, Target shares have been hit by a series of cuts amid controversy over Pride products.
The corporate’s latest snub from Citi analyst Paul Lejuez cuts shares to neutral from buy and pits the restless retailer against rival Walmart, which Lejuez said in a Friday note it can start eating up market share.
![The stock fell to $126.99 when the market closed after trading above $161 last month after a third-party Wall Street firm downgraded the stock amid concerns about slowing sales.](https://nypost.com/wp-content/uploads/sites/2/2023/06/060723targetpride11CS.jpg?w=1024)
Given the competitive landscape, “We imagine Walmart is probably going to proceed gaining market share, and Target’s high exposure to discretionary sales won’t serve them well in the present macroeconomic context,” Lejuez said in a memo.
“Despite the recent pressure on equities, we cannot advise investors to buy stocks given this momentum, and we now imagine that the chance, reward is more balanced, but the chance is more down within the short term,” he continued.
Lejuez also noted a 13.9% drop in Target store traffic within the last week of May as inflationary pressures dampened consumer spending over Memorial Day weekend.
![The retailer recently suffered losses for nine days in a row after backlash from both sides of the issue and ended the week on another losing streak.](https://nypost.com/wp-content/uploads/sites/2/2023/06/060723targetpride14CS.jpg?w=1024)
On Monday, KeyBanc Capital Markets downgraded the retailer’s shares to “sector weight” from “chubby” as the resumption of student loan repayments referred to in Congress’ debt limit deal is a big hurdle in discretionary spending for shoppers who’ve an elevated discretionary sales mix and a younger demographic with higher education.
Last week, JPMorgan Chase also downgraded Target shares, with analysts pointing to the opportunity of a decline in sales due to consumers withdrawing from spending persistent inflation.
Last month, Target confirmed that “adjustments” to Pride’s merchandising plans were underway after Fox News Digital became aware of it. recessed displays in a few of its locations.
A Target insider told Fox News Digital that some stores within the South were asked by the corporation to move LGBTQ Pride merchandise away from the front of their locations after customer outrage to avoid a “Bud Light situation.”
LGBTQ advocate Heather Hester scolded Target’s “Rainbow Capitalism” last week.
![Last week, JPMorgan Chase also lowered Target's stock rating, with analysts pointing to the possibility of a drop in sales as consumers pull back on spending amid persistent inflation.](https://nypost.com/wp-content/uploads/sites/2/2023/06/060723targetpride18CS.jpg?w=1024)
“Target really showed ultimately that they were only in it for the cash,” Hester told Fox News Digital.
“Rainbow capitalism is largely selling Pride products for profit and never necessarily supporting the community,” Hester continued. “That is what happened, right? It’s loads of things, but that is what happened at the top of the day.
Target, which has supported LGBTQ Pride for years, this season offered products labeled “Well suited to different body types and different gender expressions.” Target also sold a “Gender Fluid” cup, various adult clothing with slogans such as “Super Queer” and a pot and saucer “Grow At Your Own Temp”, as well as controversial items for kids such as a coloring book that features these same-sex couples kissing.
Individually, the vendor’s Pride collection has been left related to the controversial designer Erik Carnell of Abprallen who’s a self-confessed Satanist whose brand features occult imagery and messages such as “Devil Respects Pronouns” on the brand’s clothing.