What does everyone think about Target in 2026? After the just first week of 2026 Target has rallied over 5% after dropping 31% in 2025, following the backlash surrounding its rollback of DEI initiatives.
I’ve been a believer in Target for a while and have been consistently buying shares since October. But my faith in Target is mostly speculative, and I’m making to post to get some thoughts on more formal aspects of Target’s business.
My continued faith in the company stems mainly from the fact that girls have always loved Target. Yes this did contribute to a decline in sales as their adherence to Trump’s anti-DEI policies drove away more progressive consumers, which in large part were young women who’ve been one of Target’s primary demographics. But from what I’ve observed, the backlash was more performative than anything, as even in early fall, a lot of girls I knew still saw Target as their preferred retailer (whether it’s for the store aesthetic or products I’m not sure).
What did worry me though was Ulta beauty announcing that they were ending their long term partnership with Target, but from what I’ve observed even that doesn’t seem to be a big issue as girls still love stopping by Target and browsing their selection of beauty products.