Target acknowledges the Pride backlash hurt sales in June and says it will rethink its approach to ‘heritage moments’ going forward

• Target said right-wing outrage over its annual LGBTQ Pride Month merchandise hurt sales in June.
• Unlike boycotts against Bud Light, the anti-LGBTQ reaction included threats against workers.
• “The reaction is a signal for us to pause, adapt and learn,” Target’s chief growth officer said.

Right-wing outrage over Target’s annual LGBTQ Pride Month merchandise hurt sales in June, contributing to the first quarterly decline in six years, the company acknowledged Wednesday.

“Traffic and top line trends were affected by the reaction to our Pride assortment,” CFO Michael Fiddleke told investors on Target’s second-quarter earnings call, but he added that “it’s not possible to reliably quantify the separate impact.”

Backlash to the retailer’s Pride collection was one of several challenges that led to a 4.9% decline in revenue from the prior quarter, and a 5.4% decline compared to the same period last year, the company reported.

Retailers have by and large struggled to stay ahead of shifts in consumer spending this year, but Target was on a very short list of brands that faced backlash for their support of the LGBTQ community.

But unlike the simple boycotts against Bud Light, Disney, and The North Face, the anti-LGBTQ reaction included threats and “aggressive actions” directed against store employees, CEO Brian Cornell said.

“I want to make it clear. We denounce violence and hate of all kinds and safety of our team and our guests is our top priority,” he said.

This year was the first time in more than a decade of Target’s annual Pride celebration that the company moved to pull products from its stores — a decision that caused further controversy among Target’s LGBTQ employees, customers, and suppliers who said the company was abandoning them.

Cornell said Target would continue to celebrate Pride and other heritage months, noting that the company would be “mindful of timing, placement, and presentation.”

“The reaction is a signal for us to pause, adapt and learn,” Chief Growth Officer Christina Hennington said, adding that the goal of the Pride collection going forward will be to balance “celebration, inclusivity, and broad-based appeal.”