Every day, the news for Target gets worse.
Their shares are down more than $4 billion dollars in weeks, and more than 1.4 million Americans have signed a petition to boycott the store over their controversial transgender bathroom rule.
Now, Target just received the worst news possible: Because of the boycott, their sales are lower than they have been in a very long time.
This is a big deal:
Target Corp. shares fell the most in more than seven years after quarterly sales missed analysts’ estimates and the discount chain delivered a disappointing forecast, adding to evidence that the biggest U.S. retailers are suffering from a slump.
Target’s same-store sales gained 1.2 percent in the first quarter, which ended April 30, the Minneapolis-based company said in a statement Wednesday. Analysts had predicted 1.6 percent growth, according to Consensus Metrix.
Chief Executive Officer Brian Cornell cited “an increasingly volatile consumer environment” and colder weather in the Northeast, adding his voice to the chorus of retailers complaining of sluggish demand. As it copes with the slowdown, the company expects same-store sales to range from flat to down as much as 2 percent in the second quarter. But Cornell said it is too early to tell whether the pullback by consumers will persist through the rest of the year.
“We have seen the impact of climate and a more cautious consumer,” Cornell told reporters on a conference call. “We haven’t seen anything from a structural standpoint that gives us pause.”[…]
The stock fell as much as 9 percent to $66.98, the biggest intraday decline since December 2008.
Target is trying to downplay the fallout from the transgender rule, but it’s clear that the massive number of people who are furious about their bathroom policy has hurt them financially.
The reporter at Bloomberg is trying to downplay the boycott, but it’s clear what’s really going on here. Americans simply don’t want strange men in the ladies’ restroom, for any reason! It’s dangerous.
Now, Target and their shareholders will have to decide if they would rather make money or be “politically” correct.
What do you think about Target’s massive failure? Please leave us a comment (below) and tell us.