Kohl’s, the well-known clothing retailer, is navigating turbulent waters as its stock value continues to drop for the third consecutive day. This unexpected nosedive is linked to a similar controversy that enveloped Target recently when it faced a public boycott for promoting LGBT pride-centric products tailored for kids.
Kohl’s is currently in the hot seat because of its infant onesies carrying the rainbow emblem of LGBTQ+ pride, which has invited the ire of customers and parents who are apprehensive about the impact of gender ideologies on the young minds.
The closing price for Kohl’s stock on Thursday reached its nadir since 2020, marking a significant drop. Since the inception of the boycott calls on May 26, the company’s shares have depreciated by around 13%. The shares had experienced a comparable downward trend on Tuesday as the news of the boycott started circulating widely.
The public outcry against Kohl’s gained traction when the Twitter account “@EndWokeness”, known for its popular posts, highlighted the store’s Pride Month campaign aimed at the younger demographic. One such contentious product was a T-shirt emblazoned with the slogan “BELONG BELIEVE BE PROUD,” coupled with a silhouette of the iconic Mickey Mouse.
The outrage towards Kohl’s mirrors earlier boycotts that targeted Bud Light and Target due to their overt endorsement of gender ideologies.
Back in April, Bud Light introduced a limited-edition can designed in collaboration with transgender activist Dylan Mulvaney, stirring the pot of controversy. Calls to boycott both Bud Light and Anheuser-Busch, its parent company, surged in the following weeks. The backlash resulted in a staggering $15.7 billion devaluation of Anheuser-Busch, while its share prices plunged by over 10%.
Bud Light, in particular, bore the brunt of the backlash, with the risk of relinquishing its esteemed position as the world’s leading beer brand looming large. As per data ending May 20, Bud Light’s sales witnessed a decline of 25.7%, while Modelo, another brand under Anheuser-Busch’s umbrella, experienced a roughly 10% increase in sales.
Retail behemoth Target is also under scrutiny, similar to Kohl’s, for its pride-themed children’s merchandise. As a response to the ongoing boycott’s impact on the company’s revenues, JPMorgan has downgraded its financial outlook for Target. The bank has lowered its stock price prediction for Target from $182 to $144, a significant dip right at the onset of the summer season.
As of the end of May, Target’s valuation had suffered a blow of nearly $10 billion due to the backlash. This fiscal downturn mirrors the turmoil that such brands are experiencing due to their unequivocal endorsement of controversial issues and their impact on the consumer landscape. The public sentiment, evidently, is to keep children’s merchandise free from such debatable ideologies. Whether these brands will heed the call or persist in their current marketing approach remains to be seen.
