Target shares took another leg down on Thursday as more troubles mount for the retailer. Shares, nearing a three-year low, are on pace for the longest losing streak in 23 years, and headed for a 10th straight session of losses, approaching a three-year low of $126.75.
According to Fox News, JPMorgan Chase & Co. downgraded Target stock on Thursday from “overweight” to “neutral,” with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.
This comes as the retailer struggles with the backlash from its Pride merchandising marketing campaign, which offered merchandise that included female-style swimsuits that have the option to “tuck” male genitalia.
Other products were labeled as “Thoughtfully fit on multiple body types and gender expressions,” a “Gender Fluid” mug and a variety of adult clothing with slogans such as “Super Queer” among other items.
According to the NYP, Target’s stock has lost a whopping $13.8 billion over the past two weeks, hitting its lowest levels in nearly three years as the “cheap chic” discount retailer continues to face backlash over LGBTQ-friendly kids clothing.
Wall Street is worried that Target will suffer the same fate as Anheuser-Busch, whose Bud Light sales have fallen by more than 25% since the brand tapped transgender influencer Dylan Mulvaney to promote the beer on April 1.
“Investors are concerned that Target may be experiencing a sales decline because it’s alienated some of its core customers,” said Edward Jones analyst Brian Yarbrough.
Investors are selling their shares on the “assumption that Target might have to lower its earnings guidance because its sales and profitability has been impacted,” Yarbrough said, adding that sales could suffer for the next nine to 12 months.
Still, Yarbrough and other Wall Street analysts have not changed their ratings on Target, he said, because “we think this will be an afterthought long term.”
Target’s shares started falling after May 17 when it reported mixed first-quarter earnings, warning that sales would slow down this year as consumers spend less on discretionary items.
