Text graphic with a dark blue background reading: ’How Much Has Target Lost After Its DEI Rollback? Revenue & Stock Analysis’ in bold white and orange font. A Diversity.com Blog label is positioned in the bottom right corner.

How Much Has Target Lost After Its DEI Rollback? Revenue & Stock Analysis

Employers| Job Seekers
March 03, 2025•6 min read

The Financial Fallout of Target’s DEI Rollback

Target’s decision to scale back its Diversity, Equity, and Inclusion (DEI) initiatives has sparked nationwide debate.

While some consumers have applauded the shift, others have led boycotts, questioning whether the retailer’s commitment to inclusivity has changed.

However, beyond the social discourse, the real question remains: Has this decision financially impacted Target?

This article examines the stock market response, revenue trends, investor sentiment, and sales impact following Target’s DEI rollback.

Stock Performance: Did Target’s Share Price Drop?

Target’s stock performance is one of the strongest indicators of investor reaction to its strategic decisions. Analysts have been closely tracking its movements since the DEI rollback was announced.

Stock Trends Before vs. After the DEI Rollback

  • January 2025 (before rollback announcement): Target stock traded at $162.40 per share (Bloomberg, 2025).

  • February 2025 (after rollback announcement): Shares fluctuated between $158.20 - $160.00 (CNBC, 2025).

  • March 2025 (current): Target stock sits at $156.75, a 3.5% decline from January (Market Insider, 2025).

While the drop may not seem dramatic, analysts note that the decline contrasts with competitors like Walmart, whose stock has remained stable in the same period.

This suggests that Target’s performance is not just tied to broader market trends but may be influenced by consumer sentiment and investor hesitation.

Revenue Impact: Are Sales Declining?

Beyond stock prices, revenue reports provide insight into how Target’s decision has affected its bottom line. The company’s latest Q1 2025 financial report provides a clearer picture of sales performance.

Key Revenue Metrics:

  • Total revenue for Q1 2025: $24.8 billion, a 1.8% decline from $25.2 billion in Q1 2024 (Target Investor Report, 2025).

  • Comparable store sales dropped by 2.4%, reflecting a slowdown in customer purchases.

  • Online sales remained flat, suggesting that the backlash has mainly affected in-store foot traffic.

Retail analysts point to consumer sentiment as a major driver of these changes. Boycotts, while difficult to quantify, may have contributed to Target’s slower sales compared to its historical Q1 growth trends.

Investor Reactions: Are Shareholders Concerned?

Investor confidence is another crucial factor in determining whether Target’s DEI rollback was a financially sound decision.

What Major Investors Are Saying:

  • JP Morgan analysts have adjusted Target’s stock rating from “Neutral” to “Underweight,” citing concerns about brand reputation risks (JP Morgan Report, 2025).

  • Hedge funds have slightly reduced holdings in Target, with institutional investors selling approximately 1.2 million shares since February (Bloomberg, 2025).

  • Target’s leadership has defended the decision, stating that DEI was never the sole driver of sales performance, and their focus remains on long-term growth (Target Press Release, 2025).

Consumer Sentiment & Market Trends

While Target has made strategic shifts, it is still too early to determine the full impact of the rollback. However, early data suggests that the move has affected customer trust and loyalty.

Consumer Behavior Shifts:

  • Foot traffic has decreased by 3.1% in February and March, according to Placer.ai’s retail analysis (Placer.ai, 2025).

  • Customer sentiment scores have dropped on social media platforms, with net favorability declining by 5 percentage points (Social Listening Report, 2025).

  • Competing retailers such as Walmart and Costco have not reported similar sales slowdowns, indicating that Target’s losses may not be part of a broader retail trend.

Workforce Impact: How Are Employees Affected?

While most discussions focus on stock performance and revenue, another critical aspect is how the rollback is impacting Target’s workforce.

  • Job application rates have declined by 2.7% since the DEI rollback announcement (Glassdoor Hiring Report, 2025).

  • Internal employee sentiment scores have dropped in workplace surveys, with 23% of employees expressing concerns over the rollback’s effect on company culture (Target Employee Survey, 2025).

  • Retention rates remain steady, with no major increase in turnover since the change (HR Insights Report, 2025).

What’s Next for Target?

Retail experts suggest that Target’s leadership will need to carefully navigate public perception while ensuring steady financial performance. There are a few potential paths forward:

  • A continued downward trend if consumer backlash remains strong.

  • A stabilization in sales as media attention moves away from the controversy.

  • A potential reversal in DEI strategy if long-term revenue loss outweighs the intended benefits of the rollback.

Conclusion: How Much Has Target Really Lost?

While Target’s 3.5% stock drop and 1.8% revenue decline may not spell financial disaster, the impact of its DEI rollback is noticeable.

The company now faces challenges in rebuilding consumer trust, maintaining investor confidence, and ensuring long-term sales growth.

Whether Target’s strategy will pay off or lead to greater financial consequences remains to be seen.

However, the data so far suggests that the company is navigating a period of uncertainty, where both brand reputation and market position are at stake.

How Diversity.com Supports Employers & Job Seekers

At Diversity.com, we help businesses build inclusive workplaces while supporting HR professionals, employers, and job seekers in navigating evolving DEI strategies.

Whether you're reinforcing DEI in your company, adapting to changing regulations, or seeking career opportunities in inclusive workplaces, we provide resources, job board solutions, and expert insights to support your goals.

For Employers & HR Professionals:

✔ Create a free employer account — Start hiring with inclusion in mind. Choose from single job postings or subscription-based plans for multiple listings.
✔ Access a diverse talent pool — Connect with professionals from a variety of backgrounds to drive workplace innovation.
✔ Stay informed with expert DEI insights — Keep up with workplace diversity trends, compliance updates, and best hiring practices.

For Job Seekers:

✔ Find job opportunities with inclusive employers — Explore companies that prioritize diversity and equitable hiring.
✔ Create a free job seeker account — Start applying for jobs that align with your values and career goals.
✔ Gain insights into workplace inclusion — Research company hiring practices and access career-building resources.

We’re committed to helping both employers and job seekers navigate the shifting DEI landscape. Explore our platform today.

If you have any questions or need assistance, feel free to Contact Us Here. Our dedicated support team is ready to help!

Related Articles

Sources & References:

Target DEI rollback financial impactHow much has Target lost after DEI rollbackTarget stock performance after DEI changesTarget revenue decline 2025Target stock price March 2025Retail investor reactions to DEI rollbackTarget revenue trends after controversyDoes DEI impact business profits?

Back to Blog

Stay Informed, Stay Ahead with The Diversity.com Roundup

Your go-to source for DEI insights, career opportunities, and trends —delivered straight to your inbox, one essential topic at a time.

SUBSCRIBE TO OUR NEWSLETTER