Retail giant Target is taking a hit after backlash over its Pride Month offering.
Sales in the second quarter fell nearly 5% to $24.77 billion as Target faced a unique problem during the most recent quarter, becoming one of the companies that was targeted for its LGBTQ+ support — in particular, its displays of Pride Month merchandise.
Sales of Bud Light tanked earlier this year after transgender influencer Dylan Mulvaney posted an image of herself on Instagram with a personalized Bud Light can sent to her by the company as a gift.
Target pulled some items in particular regions and made other changes after encountering hostility from some customers who confronted workers and tipped over displays. Company executives said this week that it couldn't tease out how much the negative reaction had on its business, but once it made the changes, those incidents subsided. Overall sales improved in July from June.
"We'll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support a diverse teams and guests," Brian Cornell, Target's longtime chief executive, said on a call with reporters.
"However, as we navigate an ever changing operating and social environment, we're applying what we've learned to ensure we're staying close to our guests and their expectations of Target."
Cornell said the company has learned from the backlash and that it will be more thoughtful in merchandise offerings for its heritage months, which celebrate various ethnic and marginalized groups.
Target earned $835 million, or $1.80 per share, in the quarter that ended July 29. That compares with $183 million, or 39 cents per share, in the year-ago period.
Information from the Associated Press was used in this report.