Target’s quarterly sales fell for the first time in six years as a result of backlash from the company’s Pride merchandise.
The company’s sales fell 5.4% compared to a year ago.
Online purchases fell 10.5%.
Its total revenue was 4.9% lower than last year, with a total of $24.8 billion.
Target’s stock price fell almost 20% after the public called for a boycott of the Pride collection.
According to Target’s Chief Financial Officer Michael Fiddelke, “Traffic and top-line trends were affected by the reaction to our pride assortment, which launched in the middle of May.”
Target’s Chief Growth Officer Christina Hennington said while discussing the quarterly results that the company’s “goal is for our assortment to resonate broadly and deliver on the target brand promise.”
“In this case, the reaction is a signal for us to pause, adapt, and learn so that our future approach to these moments balances celebration, inclusivity, and broad-based appeal,” Hennington said.
Reporting from Breitbart:
Despite the decline in sales, the company posted better-than-expected profits for the quarter. Earnings per share came in at $1.80, well-above the $1.40 expected by Wall Street. The company boosted profits by reducing markdowns and inventory costs. Inventory declined 17 percent compared with a year ago, including a 25 percent reduction in discretionary categories. Freight costs and supply chain costs were also lower. The company also increased some prices. ... “We saw better-than-expected profitability in the face of softer-than-expected sales,” said Chief Executive Brian Cornell. “We continue to take a cautious approach to planning our business, and have therefore adjusted our financial guidance in anticipation of continued near-term challenges on the topline.”
