Target reports sales drop amid Pride backlash 

Target reported a drop in sales Wednesday in its second earnings report, which comes after the retail chain faced backlash over its Pride month merchandise.

Target’s comparable sales fell 5.4 percent during the second quarter as customers purchased fewer items in the discretionary categories and more in the food, beauty and essentials categories over the last three months. In a press release published Wednesday, the retailer said it will cut its profit outlook for the year with the expectation that sales will decline for the rest of the year.

“Our second quarter financial results clearly demonstrate the agility of our team and the resilience of our business model, as we saw better-than-expected profitability in the face of softer-than-expected sales,” Target CEO Brian Cornell said in a statement.

“With the benefit of a much-leaner inventory position than a year ago, the team was able to quickly respond to rapidly-changing topline trends throughout the second quarter, while continuing to focus on the guest experience,” he added.

He also said that the company will be taking a “cautious approach to planning” as it gears up for the upcoming fall season. In a media call to reporters, Cornell said that the higher prices on food and household essentials have pushed customers to cut spending in other ways.

Cornell also touched on the criticism the company received after rolling out Pride month merchandise, saying that the company has learned from it.

“We’ll continue to celebrate Pride and other heritage moments, which are just one part of our commitment to support a diverse team and guests,” Cornell told reporters. “However, as we navigate an ever-changing operating and social environment, we’re applying what we’ve learned to ensure we’re staying close to our guests and their expectations of Target.”

Target initially received criticism for its LGBTQ initiatives in May, with the retail chain announcing that it removed some Pride month merchandise in its stores after facing mounting backlash from customers, citing concerns about their workers’ safety.

A conservative legal nonprofit led by Stephen Miller announced last week that it was suing Target on behalf of one of the company’s investors, claiming that it should have anticipated public pushback against its LGBTQ Pride displays.

The Associated Press contributed to this report.