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| - In February 2025, claims circulated that U.S. retail chain Target had lost $15.7 billion in market value since dropping its diversity, equity and inclusion (DEI) policies.
(Facebook user EM M Atkism)
The claim circulated across (archived) X (archived), Facebook, Threads (archived), Reddit (archived) and Bluesky (archived).
However, while it's true Target's stock prices dipped significantly at least twice since 2023, each time resulting in a drop in market value, the reasons for this were not all DEI-related. Boycotts followed when Target announced DEI policy changes in January 2025, but as of this writing it's too early to say if, or how much, stock prices will fall.
There was no reported instance of Target's market value dropping specifically $15.7 billion in connection to the company's DEI policies. Jim Joice, Target's director of issues and crisis communications, told Snopes via email that the claim was "inaccurate." For all of the above reasons, we rate this claim false.
Elements of the claim appeared to have come from several widely reported stories about Target since 2023. The $15.7 billion figure may have come from a reported dip in stock prices following Target's 2023 Pride Campaign. The loss figure was also reported in November 2024, when Target's stock prices dipped following a poor third quarter financial report.
Target's DEI whiplash and stock price roller coaster
On May 24, 2023, Target announced that it was removing items at the center of "significant confrontational behavior" in stores after public backlash against the company's Pride collection. The recall, spurred on by backlash against products including "tuck-friendly" women's swimsuits, was criticized by leading groups in the LGBTQ+ community.
In the weeks following the announcement, outlets including the New York Post, Bloomberg and Fox Business reported on increased market value losses for Target, totaling up to $15.7 billion — the same figure touted in the February 2025 claim.
The figure also featured in reporting about Target's earnings report for the third quarter (Q3) of the financial year 2024-2025 and the resulting dip in market value. Target shares dipped 21% in a single day following the Q3 earnings report on Nov. 20, 2024. Outlets including Reuters reported the lost market value to be $15.7 billion.
However, this stock price dip did not appear to be connected to either Pride or DEI measures. According to Reuters, Target CEO Brian Cornell told a post-earnings call that the reasons for the weak Q3 results included low sales of high-margin items like technology, shipping issues and customers preferring to shop promotions (sales) rather than full-price items.
CNBC also cited a call with reporters where Target executives pointed to the costs of rushing shipments in preparation for the U.S. port strike in October 2024 as part of the reason for the Q3 results.
Unrelated to the two incidents above, Target did change its DEI policies in early 2025, though the financial effect of this is yet to be seen at the time of publication. On Jan. 24, 2025, the company issued a press release titled "Target's Belonging at the Bullseye Strategy." The release said, among other points, that Target was "concluding" its diversity, equity and inclusion goals and its Racial Equity Action and Change (REACH) program, both of which were due to expire in 2025.
The changes raised questions for LBGTQ+ advocacy groups about Target's support and led to calls from Black community leaders and civil rights activists to boycott the company.
According to the stock exchange Nasdaq, Target's stocks reached a 2025 high of $142.51 on Jan. 27, three days after the DEI announcement. Stock prices then fell into February.
While there is no proof that Target lost $15.7 billion in market value after changing its DEI measures in January 2025, DEI-related events from recent years have caused both financial and now legal problems for the company.
As of this writing, plaintiffs in Florida have filed two lawsuits against the company, both claiming they were defrauded by Target because the company failed to disclose the financial risks of its 2023 Pride campaign that sent stocks tumbling.
The most recent of these suits, filed on Feb. 20, was brought as a class-action lawsuit by Florida Attorney General James Uthmeier. Both lawsuits are ongoing as of this writing.
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