Friday, May 13, 2016


English: A new Target located in Miami
Yesterday I posted It's official - Target boycott fails. As an aside, yours truly made sure that the right executives at Target know that American Family Association, the choreographer of the boycott, is a certified anti-LGBT hate group. Whether or not that affected their decision to stand firm is unknown.

I looked through some of the comments and I suspect – I do not know for sure – that there is a certain naivety about how our equity markets work. Some people seem to believe that a loss in share value is, in effect, an operating loss for the company.

Ultimately a number of people are wed to the notion that a loss in share value proves that the conservative Christian boycott of Target is working when, in fact, the entire retail sector is under considerable pressure.

Moreover, executives (the folks making decisions) own hundreds of thousands of shares of Target including RSUs and options. They have a vested interest in Target's prosperity. Ultimately Target shares will be valued as a multiple of earnings per share and anticipated earnings per share. These folks know that history is on their side. AFA boycotts (mostly over LGBT issues) include (but are not limited to):
  • 7-Eleven
  • Abercrombie & Fitch
  • American Airlines
  • American Girl
  • Blockbuster Video
  • Burger King
  • Calvin Klein
  • Carl's Jr.
  • Chobani
  • Clorox
  • Comcast
  • Crest
  • Ford
  • Hallmark Cards
  • Hardee's
  • Home Depot
  • Kmart
  • Kraft Foods 
  • S. C. Johnson & Son
  • Movie Gallery
  • Microsoft
  • MTV
  • Paramount Pictures
  • Time Warner
  • Universal Studios
  • DreamWorks
  • Mary Kay
  • NutriSystem
  • Old Navy
  • IKEA
  • Sears
  • Pampers
  • Procter & Gamble
  • Target
  • Walt Disney Company
  • PepsiCo
  • Walden Books
They might have succeeded in influencing Abercrombie & Fitch but, on the whole, none of these efforts were successful.

National Organization for Marriage jumped on the Target bandwagon. They have been responsible for boycotting Starbucks and General Mills. Those were laughably miserable failures as well. Target may, in the future clarify its policy but they don't seem to have any desire to accede to the demands of AFA. Why should they?

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