Target stock tumbles again as customer backlash over its DEI rollback takes a bite out of sales

Sales at retail giant Target took a dive during the first three months of 2025 and executives have indicated that boycotts over its rollback on diversity, equity, and inclusion (DEI) practices are at least partially to blame.

On Wednesday, the chain cut its full-year sales outlook. Compared to this time last year, Target’s first-quarter sales fell by 2.8%, failing to meet Wall Street’s expectations. According to a consensus estimate cited by CNBC, analysts were expecting adjusted earnings per share of $1.61. Target reported adjusted EPS of $1.30.

Months ago, Target stepped away from DEI, bowing to President Trump, who has made anti-DEI initiatives a cornerstone of his second-term agenda. 

Target’s move did not go unnoticed by loyal shoppers. In the wake of the decision, many called for boycotts, and some vowed to shop only at stores that stand for equality. Sales fell, as did Target’s stock, which has tanked at least 40% over the last year, as Fast Company‘s Elizabeth Segran reported recently.

‘We’re not happy with that’

Of its latest dip in revenue, CEO Brian Cornell told reporters, per CNBC, that the company only held market share in 15 of the 35 merchandise categories that it tracks internally, meaning the Target brand is falling behind competitors. 

“We’re not happy with that,” Cornell said. “We’ve got to be growing [market] share in 60, 70, 80% of those categories.”

Cornell also said that in order to address the impact of tariffs, the brand is “constantly adjusting pricing.” He said, “Some are going up, some will be reduced, but that’s an ongoing effort that takes place each and every day.”

But the CEO pointed to other issues impacting sales, too, like “declining consumer confidence,” and, perhaps the most impactful, the brand’s move away from DEI. He referred to the major blowback somewhat gently as “the reaction to the updates we shared on belonging in January.” 

However, the fallout for Target has been anything but gentle. While many companies stepped away from DEI programs after Trump came into office this January, boycotts have seemed to hit Target harder.

Jamal Bryant, the Atlanta-based pastor who helped kick-start the Target boycott, previously told Fast Company that he believes it’s because the move demonstrated the brand’s previous commitments to Black-owned brands were perhaps merely performative. 

“We’ve never asked Target for a handout; we were looking for a handshake,” Bryant said. “And for Target to withdraw that hand so suddenly was disappointing.”

Target’s numbers certainly seem to underscore that consumer dissatisfaction. Its net sales for the first quarter were $23.8 billion, down from $24.5 billion for the same period last year.

Target shares (NYSE: TGT) were down around 6% in early trading Wednesday. The stock has tumbled more than 32% year to date.