Target Climbs as CEO Plans Sharpton Meeting to Ease DEI Tensions
73min read The meeting between Target CEO Brian Cornell and civil rights leader Rev. Al Sharpton in April 2025 marked a pivotal moment for the retailer, which had been grappling with a dramatic decline in sales, stock value, and public trust due to its reversal of diversity, equity, and inclusion (DEI) initiatives. The 3% stock surge following the meeting underscored Wall Street’s sensitivity to corporate reputation risks—but also highlighted the precarious balancing act Target faces as it navigates political, consumer, and operational headwinds.
The DEI Backlash and Its Financial Toll
Target’s decision to scale back DEI commitments—scrapping its three-year DEI goals, withdrawing from the Human Rights Campaign’s Corporate Equality Index, and rebranding supplier diversity programs as “supplier engagement”—ignited fierce criticism. Rev. Sharpton’s National Action Network (NAN) and other civil rights groups accused the company of capitulating to political pressure after President Trump’s January 2025 executive order ending federal DEI programs. The backlash triggered a 42.48% stock decline year-to-date, with Target’s market cap dropping to $57.7 billion by early 2025, down from $74 billion in 2023.
The Sharpton Meeting: A Catalyst for Rebound or Merely a Pause?
The April 17 meeting, framed as “constructive and candid” by Sharpton, brought a temporary reprieve. Target’s shares rose nearly 3% that day on hopes that renewed engagement with civil rights leaders could stave off boycotts. However, the CEO’s reversal of earlier DEI pledges—made in the wake of the 2020 George Floyd protests—remains contentious. Sharpton emphasized the need for concrete commitments, such as reinvesting in Black-owned businesses and suppliers, to avoid a prolonged consumer revolt.
The stock’s rebound also reflects broader investor relief after Target’s February and March sales data worsened. Placer.ai reported a 9% year-over-year drop in February foot traffic, followed by a 6.5% decline in March, directly tied to the DEI controversy. Wells Fargo analysts noted that DEI-related boycotts accounted for roughly half of the traffic slump, with the remainder stemming from merchandise shortages and weak demand for Target’s product overhaul.
The Bigger Picture: Operational Woes and Political Crosscurrents
While the Sharpton meeting eased near-term risks, Target’s long-term prospects remain clouded. A lawsuit filed by Florida’s attorney general alleges the company misled investors about risks tied to its DEI policies, compounding reputational damage. Meanwhile, Target’s operational challenges—lagging behind Walmart and Costco in inventory management and pricing—have eroded its appeal to budget-conscious shoppers.
Conclusion: A Fragile Rebound Amid Persistent Risks
The 3% stock surge after Target’s meeting with Sharpton offers a glimmer of hope, but the retailer’s trajectory hinges on more than just DEI optics. To stabilize its stock price—which still trails its 2021 highs by over 40%—Target must address core issues: repairing trust with socially conscious customers, resolving supply chain inefficiencies, and avoiding further missteps in its DEI strategy.
The Wall Street consensus of a “Moderate Buy” with a $135.25 price target (42.51% above April lows) suggests investors believe Target can recover. Yet the company’s 2025 challenges—42.48% annual stock decline, $16.3 billion market cap loss, and ongoing boycott threats—serve as stark reminders that corporate reputation, once damaged, is hard to rebuild. For now, the Sharpton meeting buys Target time, but lasting success will require more than symbolism.
In the words of analyst Alison Taylor, Target’s reversal “appears more significant than competitors’,” making its path to recovery uniquely fraught. The coming months will test whether Target can align its values with both evolving consumer expectations and the bottom line.
