The Briefing Room
General Category => Economy/Business => Topic started by: rangerrebew on May 16, 2016, 10:05:26 am
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May 16, 2016
Target's market cap down $6 billion since start of transgender bathroom policy
By Sierra Rayne
After announcing on April 19 that it "welcome transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity," Target faced an instant and broad public backlash that led to a boycott petition being posted online by the American Family Association the next day.
The petition currently has 1.24 million supporters, and undoubtedly a much larger share of the public that disagrees with Target's policy.
If stock prices are any indication, the boycott effort and other negative publicity has severely hurt Target's financials.
Since late February, Target's market cap had been steadily increasing, reaching a peak of $50.39 billion on April 19 -- the day the transgender policy was announced -- which was its highest value since mid-August 2015.
Immediately after the release of the transgender policy, the bottom has fallen out of Target's market cap. As of close on Friday, it stood at just $44.33 billion, down six billion dollars (or more than 12% of its value) from the start of the open bathroom policy.
While there has been sector-wide weakness over the past month, the scale of Target's decline strongly suggests the transgender policy-related consumer boycott is a major factor in its market cap loss. By comparison, the market cap of primary competitors such as Costco and Wal-Mart have only declined 6.0% and 6.9%, respectively, since April 19.
According to YouGov BrandIndex, before the transgender policy release, 42% of consumers said they would shop at Target. Within just two weeks of the policy announcement, that percentage had already dropped to just 36%.
Despite the ongoing pressure, Target's CEO says the company will not back down, meaning it could be a long year for the company if the financially powerful conservative consumer base continues to withhold its support as long as the transgender policy remains in place.
Read more: http://www.americanthinker.com/blog/2016/05/targets_market_cap_down_6_billion_since_start_of_transgender_bathroom_policy.html#ixzz48oOZJEvb
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May 16, 2016
Target's market cap down $6 billion since start of transgender bathroom policy
By Sierra Rayne
After announcing on April 19 that it "welcome transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity," Target faced an instant and broad public backlash that led to a boycott petition being posted online by the American Family Association the next day.
The petition currently has 1.24 million supporters, and undoubtedly a much larger share of the public that disagrees with Target's policy.
If stock prices are any indication, the boycott effort and other negative publicity has severely hurt Target's financials.
Since late February, Target's market cap had been steadily increasing, reaching a peak of $50.39 billion on April 19 -- the day the transgender policy was announced -- which was its highest value since mid-August 2015.
Immediately after the release of the transgender policy, the bottom has fallen out of Target's market cap. As of close on Friday, it stood at just $44.33 billion, down six billion dollars (or more than 12% of its value) from the start of the open bathroom policy.
While there has been sector-wide weakness over the past month, the scale of Target's decline strongly suggests the transgender policy-related consumer boycott is a major factor in its market cap loss. By comparison, the market cap of primary competitors such as Costco and Wal-Mart have only declined 6.0% and 6.9%, respectively, since April 19.
According to YouGov BrandIndex, before the transgender policy release, 42% of consumers said they would shop at Target. Within just two weeks of the policy announcement, that percentage had already dropped to just 36%.
Despite the ongoing pressure, Target's CEO says the company will not back down, meaning it could be a long year for the company if the financially powerful conservative consumer base continues to withhold its support as long as the transgender policy remains in place.
Read more: http://www.americanthinker.com/blog/2016/05/targets_market_cap_down_6_billion_since_start_of_transgender_bathroom_policy.html#ixzz48oOZJEvb
Follow us: @AmericanThinker on Twitter | AmericanThinker on Facebook
Sent them another letter telling them I have instructed my financial advisor to drop all funds that invest in Target.
I also told them if I did continue to hold Target stock I would as an owner they needed to be purged as they are purposely destroying stock value instead of providing value to stockholders.
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Add a few more billion in market cap losses today.
Now Target is in denial as they say it is Amazon's fault, not Target's, as they post their largest one day loss in the last 8 years.
http://www.marketwatch.com/story/target-is-the-latest-retailer-to-feel-the-amazon-effect-2016-05-18
Target Corp. on Wednesday became the latest big U.S. retailer to announce disappointing quarterly earnings, with sales falling short of estimates and the outlook for the current quarter pretty grim.
The company’s executives were also the latest to display confusion -- or perhaps it’s just denial -- as to the reason why: Amazon.com Inc. is eating everyone’s lunch. “I don’t know whether retailers just don’t want to admit it publicly, or whether they have not yet fully admitted it to themselves, but the Amazon effect is absolutely a part of these weak first-quarter results,” said Jared Wiesel, partner at pricing and revenue management consulting firm, Revenue Analytics.
“All roads point to the fact that Amazon is gobbling up share.”
Target TGT, -0.37% Chief Executive Brian Cornell admitted that sales were light on the company’s earnings call, according to a FactSet transcript.
“And daily and original shopping patterns were more volatile than in prior periods,” he said. “While guests generally maintained their pattern of larger, pantry stocking visits, we saw a slowdown in growth of smaller convenience trips.”
Target shares tumbled on the news and closed down almost 8%, marking their biggest one-day decline since December 2008.
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Retailers are down across the board. Trying to impute this to some boycott is silly.
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Retailers are down across the board. Trying to impute this to some boycott is silly.
Really?
Where is another one of your 'Retailers' this year that lost 8% of its value overnight like Target just did?
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Retailers are down across the board. Trying to impute this to some boycott is silly.
Now $10bn down the toilet, and shareholders are asking questions.
http://www.breitbart.com/big-government/2016/05/19/target-earnings-drop-protests-rise/
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Now $10bn down the toilet, and shareholders are asking questions.
http://www.breitbart.com/big-government/2016/05/19/target-earnings-drop-protests-rise/
Nordstrom tumbled the most, losing 13 per cent, after cutting its annual forecast, adding to evidence the department-store industry is in a slump.
Read more: http://www.afr.com/markets/equity-markets/wall-st-tumbles-as-retailers-miss-oil-retreats-20160513-gov1xk#ixzz49AFaVVfE
out in retail stocks pulled U.S. indexes down Wednesday. Macy's, the largest U.S. department store chain, slashed its annual profit forecast after it reported a steep drop in earnings. Office Depot and Staples took big losses after a judge blocked their plans to merge.
Macy's had its biggest one-day loss since 2008, and its troubles dragged down department store, clothing, jewelry and accessories companies.
http://www.latimes.com/business/la-fi-financial-markets-20160511-snap-story.html
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Retailers are down across the board. Trying to impute this to some boycott is silly.
More proof Target us losing it.
http://www.breitbart.com/big-government/2016/05/20/target-ceo-blames-climate-change-not-bathroom-policy-hurting-sales/
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Retailers are down across the board. Trying to impute this to some boycott is silly.
still in denial?
From article
Walmart's current market cap ($220.83 billion) is effectively equivalent to where it was on April 19 (219.38 billion). By comparison, Target's current market cap ($41.22 billion) is $9.2 billion lower than it was when the bathroom policy was implemented ($50.39 billion).
Consequently, the rational conclusion is that the Target boycott has already directly cost the company more than $9 billion in market cap. Even if we adopted a more conservative approach that averaged the post-April 19 market cap performance of all Target's natural competitors, we still end up with nearly the same boycott-induced loss of market cap.
(http://)
http://www.americanthinker.com/blog/2016/05/target_boycott_has_directly_cost_company_92_billion_in_market_cap_to_date.html
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Stock Value still falling. Now at minus $10.5 bn
http://www.americanthinker.com/blog/2016/05/target_market_cap_now_down_105_billion_due_to_boycott.html
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It lost some more, now down to $40.3bn today.
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Thought I heard a blurb about layoffs on the news on the hour on the radio.
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Thought I heard a blurb about layoffs on the news on the hour on the radio.
I hope it is their chief diversity officer https://corporate.target.com/press/leadership/laysha-l-ward
She is dismantling the company. Surprise, surprise, she serves on one of the White House's Executive Leadership Council.
Since she is also a board member of Denny's I would sell that stock if you have any.
Walmart and IHOP for me.
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Now Target's deteriorating stock value has been recognized by the Big Boys.
http://247wallst.com/investing/2016/06/03/merrill-lynch-makes-big-changes-to-high-quality-and-dividend-yield-portfolio/
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Worst long range trend in its stock in 40 years.
http://www.seeitmarket.com/target-stock-tgt-chart-spell-trouble-retailer-investing-15729/
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Target isn't comparable to Nordstrom or Macy's, imo. It's competitor is Walmart. Walmart is up since Target's announcement. My guess is Target customers are going to Walmart.
Target is just a few blocks from us. Walmart is a few miles. We have been making the drive to Walmart for convenience items as opposed to running into Target as we have in the past.
I know that I refuse to set foot in Target since they changed their bathroom policy.
And I didn't sign any petitions.
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Here's that Chief Diversity officer in news again. http://finance.yahoo.com/news/target-donates-200-000-texas-170600516.html
Note the headline reads "Target Donates $200,000 to Texas Communities Following Devastating Memorial Day Weekend Flooding"
But $115,000 of it was Target giftcards. They are using this to get more business in their failing enterprise.
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Here's that Chief Diversity officer in news again. http://finance.yahoo.com/news/target-donates-200-000-texas-170600516.html
Note the headline reads "Target Donates $200,000 to Texas Communities Following Devastating Memorial Day Weekend Flooding"
But $115,000 of it was Target giftcards. They are using this to get more business in their failing enterprise.
And why wouldn't they? It's THEIR donation. Target sells most of the things a family will need to recover.
You hate Target. We get that.
Abaraxas posted a summary, on another thread, that Target's market loss is due to a poor first quarter, not the boycott. But, continue your crusade anyway.
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I know that I refuse to set foot in Target since they changed their bathroom policy.
And I didn't sign any petitions.
Same here. Target is farther away than Walmart, but I used to go there occasionally. No more.
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And why wouldn't they? It's THEIR donation. Target sells most of the things a family will need to recover.
You hate Target. We get that.
Abaraxas posted a summary, on another thread, that Target's market loss is due to a poor first quarter, not the boycott. But, continue your crusade anyway.
I do not hate Target, just dislike all liberal policies, and if a company wishes to place liberal policies in its business that jeopardizes the safety of kids, then it needs to suffer the consequences of its actions.
One is free to act stupid as long as it hurts no one else, just don't try to hurt others.
Can you point me to the other thread? It seems it conflicts with several I have read that indicate that the bathroom policy is directly responsible for the current lack of performance by Target or its stock.
@Abraxas
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And why wouldn't they? It's THEIR donation. Target sells most of the things a family will need to recover.
You hate Target. We get that.
Abaraxas posted a summary, on another thread, that Target's market loss is due to a poor first quarter, not the boycott. But, continue your crusade anyway.
Find that article yet?
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And why wouldn't they? It's THEIR donation. Target sells most of the things a family will need to recover.
You hate Target. We get that.
Abaraxas posted a summary, on another thread, that Target's market loss is due to a poor first quarter, not the boycott. But, continue your crusade anyway.
I notice 162 posts made by you since I asked for the link. Silence from you tells all.
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I notice 162 posts made by you since I asked for the link. Silence from you tells all.
Go here:
http://www.gopbriefingroom.com/index.php/topic,210414.msg912956.html#msg912956
Reply #7
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ty
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Retailers are down across the board. Trying to impute this to some boycott is silly.
Possibly.
It will be interesting to see what Q2 results will be; and as compared to similar companies in the same market.
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author=IsailedawayfromFR link=topic=206840.msg896276#msg896276 date=1464179672]
still in denial?
From article
Walmart's current market cap ($220.83 billion) is effectively equivalent to where it was on April 19 (219.38 billion). By comparison, Target's current market cap ($41.22 billion) is $9.2 billion lower than it was when the bathroom policy was implemented ($50.39 billion).
Consequently, the rational conclusion is that the Target boycott has already directly cost the company more than $9 billion in market cap. Even if we adopted a more conservative approach that averaged the post-April 19 market cap performance of all Target's natural competitors, we still end up with nearly the same boycott-induced loss of market cap.
http://www.americanthinker.com/blog/2016/05/target_boycott_has_directly_cost_company_92_billion_in_market_cap_to_date.html
(http://)
Thanks for the graph.
That makes it pretty clear.
Let's see how Q2 results show up.. I think it will be real obviously shown that Target has been OUTTED in the business world! And is committing business suicide. Share holders selling in droves!
Quotes from Target CEO Brian Cornell:
We had a lot of tough feedback. But sitting here today, I know we made the right decision.
We took a stance, and were going to continue to embrace our belief of diversity and inclusion and just how important that is to our company.
***suicide***
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Thanks for the graph.
That makes it pretty clear.
Let's see how Q2 results show up.. I think it will be real obviously shown that Target has been OUTTED in the business world! And is committing business suicide. Share holders selling in droves!
Quotes from Target CEO Brian Cornell:
***suicide***
Another dialogue going on, mostly trying to defend the indefensible. http://www.gopbriefingroom.com/index.php/topic,210414.0.html
Where I live, the Target and Walmart are across the street from each other. I drive by every day and have noticed a lessened number of vehicles in the Target lot and Walmart seems always full. It is an obvious change and it has undoubtedly affected Target's bottom-line even without looking at the company financials.
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Retailers are down across the board. Trying to impute this to some boycott is silly.
you are the one who looks silly now. http://www.breitbart.com/big-government/2017/04/07/report-targets-ceo-opposed-transgender-plan-slashed-20-billion-stock-value/
@sinkspur