Target sales fell nearly 3 percent in the first quarter of 2025 as consumers boycotted the retailer over its reversal of diversity, equity, and inclusion (DEI) programs upon President Donald Trump’s return to office.
Newsweek reached out to Target for comment via email.
Why It Matters
Target announced in January that it would roll back its DEI programs following Trump’s executive order to dismantle the federal government’s DEI initiatives, which he described as “radical” and wasteful.”
The move sparked pushback from many customers, who viewed it as a betrayal of the company’s previous commitments to promote diversity. Many consumers have boycotted Target over the DEI decision in hopes of pressuring Target to reverse course and reinstitute those initiatives.
What to Know
Target announced on Wednesday that its net sales in the first quarter fell nearly 3 percent, and executives acknowledged the reaction to the company’s DEI rollback played a role in the declining sales.
The exterior of a Target store in Los Angeles, California is seen on August 17, 2022. The exterior of a Target store in Los Angeles, California is seen on August 17, 2022. ROBYN BECK/AFP via Getty Images
Target’s sales were $23.8 billion in the first quarter, down from $24.5 billion in the first quarter of 2024, the company wrote in an earnings release Wednesday morning.
During an earnings call, Target CEO Brian Cornell described an “exceptionally challenging environment” that saw declines in both traffic and sales. He pointed to the reaction to the company’s “belonging” strategy as one factor that contributed to this.
“We faced several additional headwinds this quarter including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs and the reaction to the updates we shared on belonging in January. While we believe each of these factors played a role in our first quarter performance, we can’t reliably estimate the impact of each one separately.”
Target’s stock fell about 4 percent by 10:30 a.m. ET as investors reacted to its declining sales.
It’s not the first time Target has found itself under political scrutiny. In recent years, the company also faced backlash and boycotts from conservatives over its merchandise for LGBTQ+ Pride month.
What People Are Saying
Target CEO Brian Cornell said during the earnings call: “I want to be clear that we’re not satisfied with this performance, and we’re moving with urgency to navigate through this period of volatility.”
Nina Turner, a progressive commentator and former Ohio legislator, wrote in a post to X (formerly Twitter): “Target sales FELL in the first quarter and the company warns sales will be down in 2025. We didn’t need that warning, we already told them that. Keep boycotting.”
What Happens Next
Target also cut its sales projections and expects a low-single-digit decline for 2025, the Associated Press reported. The company is also setting up a new office let by CFO Michael Fiddelke that is intended “to build more speed and agility into how we operate and position key capabilities to drive long-term profitable growth.”
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