Business

Target Corp.’s  Chief Executive Officer Brian Cornell met with reverend and civil rights activist Al Sharpton today to discuss backlash from cuts to its diversity, equity, and inclusion program in January.

Earlier this year,  the retailer announced a major rollback of its Diversity, Equity and Inclusion initiatives, scaling back its internal DEI team and quietly shifting away from several equity-focused programs. The company cut mentorship programs for Black and Latino employees, supplier diversity efforts that prioritized partnerships with minority-owned businesses, and some cultural heritage marketing campaigns.

Following the announcement, several prominent Black pastors responded by urging their congregations to boycott the retailer. In a daring call to action, they announced a 40-day boycott in early February, citing the DEI rollback as a betrayal of the company’s prior commitments to supporting inclusive representation on its shelves. 

According to Retail Brew, Target stock dropped to a four-year low of $88.76 per share on April 6, a stark difference from a high of $266.38 on Nov. 15, 2021. 

Since Donald Trump’s return to the White House, corporate sentiment around DEI has shifted markedly. Companies that once championed progressive change in 2020 are now backtracking out of fear of retaliation under the current administration, and customers and civil rights activists are pushing back.

“You can’t have an election come and all of a sudden change your old positions,” Rev. Al Sharpton told CNBC on Wednesday, criticizing Target’s retreat from its diversity efforts.

Sharpton, speaking ahead of a planned meeting with company executives, made it clear that political pressure shouldn’t dictate corporate values.

“If an election determines your commitment to fairness,” he continued, “then fine — you have a right to withdraw from us. But then we have a right to withdraw from you.”

Costco Wholesale Corp., one of Target’s biggest competitors, recorded 13 consecutive weeks of increased foot traffic, a trend believed to be attributed to the company’s commitment to DEI programs despite political pressure. 

At today’s market close, Costco’s stock was up 0.42%.

Shares of Affirm Holdings (AFRM), the buy-now pay-later provider, fell by nearly 4% to close at $46.90 on Thursday. In the last month alone, Affirm’s stock has fallen by nearly 39%, amid a broader market selloff.  

This decline came despite recent announcements with resale marketplace StockX and online clothing retailer StitchFix. Affirm announced an offering of 22 million new shares, according to a recent 8-K filing from the Securities and Exchange Commission (SEC). The company’s drop in share price reflects a broader instability in the US stock market, brought about by recession fears and tariff changes announced by the federal government in recent weeks.

Despite market volatility, Affirm remains optimistic about its growth. At the Morgan Stanley Technology, Media, and Telecom Conference in San Francisco earlier this month, Affirm President Libor Michalek expressed confidence in the company, highlighting the platform’s 21 million active users. “We’re really pleased with the growth and the performance we’ve delivered,” he said.

Pat Suh, Senior Vice President at Affirm, also highlighted the company’s expanding merchant network in a recent press release: “In October through December [2024], fashion sales through Affirm were up 20% year-over-year,” Suh said. “To meet this increased consumer demand, we’re growing our network to include even more fashion merchants.” 

While Affirm’s leadership expressed confidence regarding the company’s direction, insider trading activity may suggest otherwise to investors. 

Form 4 filings submitted to the SEC last Tuesday reveal multiple insider transactions placed after the company’s recent equity offering. Most notably, Keith Rabois, a director on Affirm’s board, sold 16,088 shares for a total of $1 million. This sale came shortly after several Affirm executives – including Chief Operating Officer Michael Linford, President Libor Michalek, and Chief Financial Officer Robert O’Hare – exercised stock options of their own

Public schools across the country have just 10 days to complete certification or risk losing federal funding, the U.S. Department of Education warned Wednesday.

The mandate requires schools to confirm their compliance with federal civil rights laws, as part of a broader push by the department to eliminate certain diversity, equity, and inclusion (DEI) programs. Schools that fail to certify on time could lose access to crucial federal aid, including Title I funding that supports services in low-income districts.

The loss of funding would have sweeping consequences, especially for schools that depend heavily on federal support for vital programs like free school meals, special education services, and classroom resources in underserved communities. Education and civil rights advocates warn that the move could disproportionately impact districts serving Black, Latino, and low-income students. According to NPR, while the federal government only provides about 10% of overall school funding, more than 90% of U.S. school districts benefit from Title I funds. This year, over $18.38 billion was allocated through the program, making the stakes particularly high for schools in states with limited education budgets.

The certification requirement follows a rapid escalation of federal efforts to dismantle DEI programs in public education. Two weeks ago, the Department of Education ordered schools to dismantle all DEI-related policies within 14 days, arguing that such policies promote discrimination and undermine merit-based learning. Schools were told to revise curricula, eliminate equity-focused initiatives, and in some cases, lay off staff dedicated to inclusion efforts.

The crackdown builds on actions taken earlier this year, including a January executive order targeting programs deemed to promote “gender ideology.”

In February, the department launched the “End DEI” database, encouraging parents, teachers, and students to report instances of perceived race- or sex-based discrimination in schools. Soon after, the department released a guidance interpreting the 2023 Supreme Court decision on affirmative action as banning all race-conscious education policies.

Critics argue that these moves represent a significant rollback of civil rights protections in education, while supporters say they restore fairness and neutrality. 

In a statement, Craig Trainor, the department’s acting assistant secretary for civil rights, reinforced the administration’s stance: “Federal financial assistance is a privilege, not a right,” Trainor said. “When state education commissioners accept federal funds, they agree to abide by federal antidiscrimination requirements. Unfortunately, we have seen too many schools flout or outright violate these obligations, including by using DEI programs to discriminate against one group of Americans to favor another based on identity characteristics.”