Goal shareholders took a beating again on Friday, with the big-box retailer’s stock falling 3.26%.
The backlash from the Pride controversy coincides with the stock losing over $15 billion in market value since mid-May.
Shares plummeted to $126.99 when the market closed after eclipsing $161 just last month after a 3rd Wall Street firm downgraded the shares on concerns over slowing sales.
For the reason that controversy began, Goal’s market cap has fallen $15 billion to $58.61 billion as of Friday’s closing price.
Goal’s market value was over $74 billion before the polarizing Pride displays made national news, as tracked by Dow Jones Market Data Group.
Goal initially irked conservatives with Pride displays that featured items resembling “tuck-friendly” women’s swimsuits, however the LGBTQ community became outraged when the displays were dialed back ahead of Pride Month.
The retailer recently suffered nine straight days of losses on the heels of backlash from each side of the difficulty and finished the week with one other losing streak.
Entering Friday, Goal’s stock value had fallen roughly 3.1% within the last five days, after plummeting about 18.5% the last month. Already near a three-year low, Goal shares have been hit with a series of downgrades amid the controversy over Pride products.
The corporate’s latest snub from Citi analyst Paul Lejuez lowers the stock to neutral from buy and pits the troubled retailer against rival Walmart, which Lejuez said in a note on Friday would begin gobbling up market share.
Goal initially irked conservatives with Pride displays that featured items resembling “tuck-friendly” women’s swimsuits, however the LGBTQ community became outraged when the displays were dialed back ahead of Pride Month.Christopher Sadowski
Considering the competitive landscape, “We imagine Walmart is prone to proceed gaining market share, and Goal’s high exposure to discretionary sales is not going to serve them well in the present macro backdrop,” Lejuez said within the note.
“Despite the recent stock pressure, we cannot recommend investors buy the stock given these dynamics and now imagine the chance, reward is more balanced, but risk is more to the downside near term,” he continued.
Lejuez also highlighted Goal’s 13.9% drop in store traffic the ultimate week in May as inflationary pressures subdued consumer spending over Memorial Day weekend.
The retailer recently suffered nine straight days of losses on the heels of backlash from each side of the difficulty and finished the week with one other losing streak. Christopher Sadowski
On Monday, KeyBanc Capital Markets cut the retailer’s shares to “sector weight” from “chubby” because the resumption of student loan payments stipulated by Congress’ debt ceiling agreement poses a large headwind for discretionary spending for shoppers, which has an elevated discretionary sales mix and a younger, college-educated core consumer demographic.
Last week, JPMorgan Chase also downgraded Goal’s stock, with analysts citing the potential for a decline in sales attributable to consumers pulling back spending amid persistent inflation.
Last month, Goal confirmed “adjustments” to the Pride merchandising plans were underway after Fox News Digital learned it rolled back displays at a few of its locations.
A Goal insider told Fox News Digital that some Southern stores were told by the corporation to maneuver LGBTQ Pride merchandise away from the front of their locations after customer outrage to avoid a “Bud Light situation.”
LGBTQ advocate Heather Hester scolded Goal’s “rainbow capitalism” last week.
Last week, JPMorgan Chase also downgraded Goal’s stock, with analysts citing the potential for a decline in sales attributable to consumers pulling back spending amid persistent inflation.Christopher Sadowski
“Really what Goal ultimately did was show that they were on this only for the cash,” Hester told Fox News Digital.
“Rainbow capitalism is actually, you recognize, selling Pride products for profit and never necessarily standing behind the community with support,” Hester continued. “That’s what happened, right? There are plenty of things that go into that, but that’s what happened at the top of the day.”
Goal, which has supported LGBTQ Pride for years, this season offered merchandise that was labeled as “Thoughtfully fit on multiple body types and gender expressions.” Goal also sold a “Gender Fluid” mug, a wide range of adult clothing with slogans resembling “Super Queer” and a “Grow At Your Own Pace” saucer planter, along with controversial items for youths like a coloring book that features same-sex couples kissing.
Individually, the retailer’s Pride collection has been linked to controversial designer Erik Carnell of Abprallen, who’s an outspoken Satanist, whose brand features occult imagery and messages like “Devil respects pronouns” on brand apparel.
