Rizna Mutmainah
Money & Banking

Backlash to new kids clothing line sees Target lose billions

Target has lost billions in market valuation as its Pride-themed kids line continues to face backlash.

Target shares were trading at $160.96 (A$246.18) a share, which means their market valuation was roughly around $74.3 billion (A$113 billion)

The Minneapolis-based retailer’s stock value dropped drastically following the calls to boycott their “PRIDE” collection, at just $138.93 (A$212) a share as of Friday, which is a 14 per cent drop in value to around $64.2 billion (A$98 billion) , according to The New York Times.

This roughly translates to a $10.1 billion (A$15 billion) loss in valuation.

The plummet is the retailer's lowest stock price in nearly three years, and the last time any company’s stock plummeted this intensely was in 2022 after the stocks equalised during the pandemic.

Target has since moved its Pride section away from the front of the store in some Southern states, following displays being knocked over by protesters, who also confronted the workers.

They also said they would remove items from the collection but didn’t specify which ones.

Some of the clothes receiving backlash were the rainbow-themed children’s clothing, and a “tuck-friendly” swimsuit for trans women, who have not yet had their gender-affirming surgeries, to conceal their genitalia.

Target CEO Brian Cornell has defended the LBGTQ-friendly clothing line and has said that selling them was “the right thing for society.”

Images: Getty

Tags:
Money & Banking, Finance, Target, Stock Value, Pride, LGBTQ