Get Woke, Go Broke: Target Misses Revenue For First Time In Six Years, Blames Shoppers For Hating Its Pride Collection

Let's be honest, Target isn't going broke anytime soon, but there are definitely body shots that are landing.

CEO Brian Cornell is now openly admitting Target's Pride Collection had a negative financial impact on the bottom line in the first quarter of 2023.

After a summer of consumer boycotts and backlash for Target's Pride gingerbread houses and Pride toddler sock collections, the numbers are in and Cornell is left to explain to investors why the company missed revenue projections for the first time in six years.

CNBC business reporter Courtney Reagan took a look at the quarterly report that was released Wednesday morning and notes, “Target CEO Brian Cornell pointed to macro pressures including inflation for tempering sales but also ‘negative guest reaction to our pride collection.'"

Target claims business stabilized once they moved the Pride collection into less-visible locations during June and that things are just fine now.

But, wait, there's more.

"The last time Target’s comp sales were negative was six years ago and that does correspond to the four quarters that followed the retailers stance allowing guests to use whatever bathroom they choose for their gender identity," Reagan further reports. "Though Target did say at the time that any lost sales from those boycotts weren’t material enough to report, this time they are calling it out.”

According to Fox Business, Target's market value has dropped from $74 billion before the latest Pride rollout to $57.7 billion.

So, yes, Target isn't going fully broke anytime soon here, but you get the point, there was a significant hit to the business and the CEO admitted as much.

What about back-to-school sale numbers now that people are furious with Target?

The Pride Collection has now passed, woke Target CEO Brian Cornell has given his 1st Q. speech, but now what? Will the boycott of Target filter down to effect the company's 2nd Q. numbers when shoppers would've been purchasing the back-to-school supplies, which is the second busiest shopping season of the year?

Pride Month apparel accessories are seen on display at a Target store on June 06, 2023 in Austin, Texas. (Photo by Brandon Bell/Getty Images)

As noted by RetailDive.com, Target went silent on Pride after a May 24 statement that left the woke allies wondering whether the company was still down with the cause. "Target’s refusal to reiterate its commitment to gay pride is widely seen as reflecting fear that it would face the sales and share price declines seen at Bud Light, which has endured vitriol on social media and faced a boycott over its brief tie-up with a transgender influencer," Daphne Howland of Retail Dive wrote in early June.

I'm no financial analyst, but now you have rumblings of Target agitating the allies and then you have the boycott folks who've moved on out of principle.

Throw in never-ending inflation pressure and you have the possibility of more trouble ahead. Don't take my word for it -- "the second quarter will probably not be great either," business outlet The Street reported in early July.