Discount retailer Target Corp (NYSE:TGT) has decided not to sell LGBTQ-themed products in certain stores during Pride Month in June, following a previous backlash that impacted its revenue.
What Happened: Target will offer its full range of LGBTQ+ merchandise online but is evaluating store-level data to determine which physical locations will carry these products.
A Target spokeswoman stated that the company will provide a selection of Pride items in select stores and online, based on customer feedback and market research.
The retailer began moving Pride displays to the back of its stores in certain Southern locations (i.e, locations in semi-rural areas of Georgia, South Carolina and Arkansas) last year. This led to the removal of some products altogether after protestors reportedly tipped over displays.
Meanwhile, LGBTQ allies criticized the Minneapolis-based company for not standing up against anti-LGBTQ activists.
The decision for the upcoming Pride Month holds importance for Target, as previous backlash, combined with reduced demand for non-essential items, contributed to ongoing sales declines.
The company reported fourth-quarter FY23 revenue growth of 1.7% year-on-year to $31.92 billion with an adjusted EPS of $2.98.
Why It Matters: Some 510 anti-LGBTQ bills were introduced in state legislatures across the U.S. in 2023, per American Civil Liberties Union data, an uptick from 2022.
Target and other major companies have emphasized their commitment to supporting the LGBTQ+ community, but face backlash from customer sects in certain states.
Chief Executive Officer Brian Cornell acknowledged the challenges faced by the company last year and expressed a commitment to learning from the experiences to better serve both employees and the LGBTQ+ community.
Target stock has more than 4% in the last 12 months. Investors can gain exposure to the stock via Vanguard Consumer Staples ETF (NYSE:VDC) and Consumer Staples Select Sector SPDR Fund (NYSE:XLP).
Price Action: TGT shares are trading higher by .06% at $164.42 in premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.