Goldman Sees Boycott Easing For Target - But Says "Still Too Early For Turnaround" Story

Target CEO Brian Cornell blamed a soft quarter on a consumer boycott over the retailer's decision to scale back its DEI initiatives. The retailer has faced multiple boycotts in recent years, angering both conservatives and progressives. Conservatives boycotted Target for its LGBTQ-friendly kids' clothing, while progressives boycotted the retailer for discontinuing DEI initiatives. Goldman analysts led by Kate McShane published a report suggesting that the boycott pressure on Target may be easing, with some early signs of improvement. The analysts cited sentiment data, including Twitter sentiment and app downloads, to gauge consumer behavior. While there are some positive signs, it's still too early to call a turnaround, as key performance indicators have not improved. Target's app downloads remain depressed, but traffic trends have improved since February. Net Promoter Scores and Net Purchase Intent metrics have potentially bottomed out, but are still lower than Walmart's. Goldman forecasts same-store sales to fall by 3% in Target's upcoming Q2 earnings, with an operating margin of 5.3% and earnings per share of $2.06. The lesson for corporate America is that DEI initiatives may be viewed as liabilities in an era where the Overton Window has shifted to the center-right.