Halloween costumes are mired in a “black face” dispute, and Target (TGT.US) is mired in a whirlpool of racial discrimination, and its stock price has plummeted

The Zhitong Finance App learned that Target's (TGT.US) stock price fell on Tuesday. Previously, the major retailer was heavily criticized by public opinion for a Halloween costume and apologized for it. The company announced on Monday that it had removed the costume. Critics say it is suspected of implying blackface (blackface) racist images. “This costume is offensive and should not have been part of our product portfolio,” Target said. The retailer is investigating how the relevant product enters inventory.

Target's stock price once fell more than 4%, becoming one of the biggest losers in the S&P Retail Select Industry Index. The stock closed down 3.78%. As of press time, it was slightly down 0.1% after the market. On the same day, the US consumer confidence index fell to its lowest level since the beginning of the year in August, putting pressure on the retail sector.

Chief Merchandise Officer Cara Sylvester (Cara Sylvester) apologized to employees on Tuesday and promised that the company would learn lessons and make improvements.

Sylvester wrote in an internal memorandum obtained by foreign media: “I want everyone to hear it directly from me. We take this matter very seriously. We have taken a number of steps to acknowledge and address the impact internally and externally, and are actively investigating the causes of the incident and the changes that need to be made in the future.”

By Monday's close, Target's stock price had risen 74% during the year, thanks to the company's improved operating performance and regaining sales growth momentum under the new CEO Michael Fiddelke (Michael Fiddelke).

Joe Feldman (Joe Feldman), an analyst at Telsey Advisory Group, said, “The company has made progress before, but this time it is a step backwards.” He called this a “homebrew problem,” and pointed out that although all retailers face product selection issues from time to time, Target seems to have such issues more frequently than their peers.

In early 2025, as Donald Trump returned to the White House, Target angered some consumers by curtailing diversification-related initiatives. According to previous reports, soon after taking over as CEO earlier this year, Fidelke told employees that the company's reputation had been damaged, particularly among black consumers, and efforts were being made to rebuild ties with them.

Past controversy over Target products also included: a 2024 Black History Month-themed book was removed from the shelves due to mislabeling an iconic civil rights figure; in 2023, the company's LGBTQ Pride Month-related series of products sparked protests and excessive acts against employees.

Ahead of the market on August 19, this major retailer with more than 2,000 stores announced financial results for the second quarter of the 2026 fiscal year ending August 1. All core indicators fully exceeded Wall Street expectations, and once again raised its full-year results guidance. After three years of difficult adjustments due to declining revenue, Target is proving to the market that its transformation strategy is paying off with strong performance for three consecutive quarters.

Net sales increased 5.3% year over year to US$26.54 billion, exceeding market expectations of US$26.11 billion. Adjusted earnings per share reached $4.11, which doubled from $2.05 in the same period last year, and far exceeded analysts' expectations of $2.33.