Kohl's stock set to reach lowest point since 2020 amid anti-LGBTQ+ boycott chatter

By Bill Peters

Dozens of LGBTQ+ advocacy groups said that the boycott calls against businesses were 'blatantly organized by extremist groups'

Department-store chain Kohl's Corp. appeared to be the latest retailer to face at least some online calls for a boycott over its sale of Pride-themed merchandise, following similar anti-LGBTQ+ campaigns against Bud Light and Target Corp.

The scope and impact of the sentiment against Kohl's was not yet clear. Kohl's did not immediately respond to a request for more information. LGBTQ+ advocacy groups have described the recent boycott push against retailers and other brands as a coordinated effort.

Shares of Kohl's (KSS) were down 3.6% on Wednesday, after falling 5.1% on Tuesday. Wednesday's move lower put the stock on pace for its lowest close since Sept. 29, 2020.

However, those shares have fallen 54.5% over the past 12 months, as inflation weighed on consumer demand.

On Twitter, social-media accounts over the past few days appeared to direct their anger at Kohl's Pride-themed clothing intended for children, although there were broader complaints about the chain going "woke" as well. On Tiktok, the hashtag #boycottkohls had around 368,000 views; the Wall Street Journal noted that figure stood at 280,000 on Tuesday.

The online reaction was the latest against a store or brand over an LGBTQ+-focused marketing push ahead of Pride Month in June. That uproar has raised questions over corporate America's positioning amid clashes between consumerism and politics, and how genuine its support for LGBTQ+ ever was, as conservative-led boycott efforts start to weigh on sales and stock prices -- at least at Anheuser-Busch InBev, Bud Light's parent company.

Sales of Bud Light have fallen in recent weeks following the beer's brief promotional partnership with trans influencer Dylan Mulvaney. Other brands, like Nike Inc. (NKE) and Adidas (ADS.XE), have faced similar calls for boycotts. Target (TGT) has pulled or rearranged some LGBTQ+ Pride-themed merchandise in some stores after facing conservative anger online and in stores.

Target said those decisions were intended for employee safety. But a leader of a worker-advocacy group said that the move was intended to protect sales, and that Target employees have faced plenty of harassment in years past.

Shares of AB InBev (ABI.BT) have dropped over the past month, as investors grow more worried about the sales impact of the boycott drive against Bud Light. Target shares, down 1.4% on Wednesday, were on pace for their lowest close since August of 2020, and the stock has fallen for nine straight days. But that drop also follows Target's quarterly results on May 17, when the retailer warned of "softening sales trends"

On Wednesday, LGBTQ+ advocacy groups -- including GLAAD and the National LGBTQ Task Force -- said that more than 100 such groups had signed on to a statement that called on Target to reaffirm their support for LGBTQ+ people, put Pride-themed items to the sales floor and take steps to protect store workers. That statement, from last week, said the boycott calls against Target and others were "blatantly organized by extremist groups."

"Extremist attacks and harassment of businesses for standing in solidarity with the LGBTQ+ community and values of diversity, equity, and inclusion have challenged Target, and businesses more broadly, to lead -- to demonstrate they mean what they say when investing in and standing with LGBTQ+ people, creatives, and organizations," the statement said.

"Businesses must continue to lead and respond with unwavering support for LGBTQ+ employees, shareholders, customers, allies -- and the broader community," it said. "When values of diversity, equity, and inclusion are tested, businesses must defend them unequivocally."

-Bill Peters

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05-31-23 1426ET

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