Target apologizes for racist Halloween costume, erasing days of stock gains

Minneapolis — Retailer Target removed a children's Halloween costume from its shelves Monday following widespread social media backlash, apologizing for selling a garment that critics said evoked racist minstrel caricatures.

Critics argued that the costume—along with its promotional image featuring a Black child modeling the outfit—resembled caricatures from Jim Crow-era minstrel shows. Those performances embedded racial stereotypes into popular culture and helped justify discrimination, segregation, and racial violence.

Target's Response

"As a company, we know we got this wrong, and we are deeply sorry. The costume is offensive and should never have been part of our assortment. It is no longer available for sale," Target said in a statement.

"We know this is especially hurtful for our Black guests, team members and partners. Removing the costume is an important first step, and the company is looking closely at how this happened and what needs to change to ensure this won't happen again."

The Costume

The "Kids' Glows Under Blacklight Circus Clown Halloween costume"—an orange-and-black circus clown outfit—has been deleted from Target's website. It featured gloves, a top hat, and a grinning mask with large teeth.

Broader Context

The costume controversy comes as Target's sales have begun rebounding from earlier company moves that alienated some customers and from perceptions that the quality of its stores and merchandise had declined.

It is the latest controversy for the retailer, which joined companies like Meta, Walmart, and McDonald's in rolling back their diversity, equity, and inclusion (DEI) efforts after President Donald Trump won the 2024 election.

Criticism from Activists

"A Jim Crow-era minstrel costume is not simply getting it wrong. It is a profoundly harmful symbol of racism that should never have been designed, approved, or sold by Target," said the Rev. Jamal Bryant, a Georgia pastor who led a 40-day "Target Fast" boycott last year. "It shows that Target still lacks corporate diversity among decision-makers and needs concrete internal change."

In January 2025, the Minneapolis-based corporation ended its three-year DEI program, stopped reporting to external groups like the Human Rights Campaign, and ended a program focused on carrying more products from Black- or minority-owned businesses. It replaced that initiative with a new "Belonging" strategy. The company previously stated that the murder of George Floyd was a catalyst for its DEI initiatives.

Boycott Impact

Activist-organizers called for a boycott of Target, which lost roughly $12.4 billion in market value by the end of February from January.

Minnesota civil rights activists—separate from Bryant—organized a national Target boycott, resulting in a 33% fall in the corporation's stock prices and wiping out over $20 billion in market value.

Recent Recovery

Target has managed a recovery in recent months. The stock closed at $165.44 on August 21, a fresh 52-week high, after a strong second quarter. On August 24, Target's shares closed at $169.89.

Target's stock is up roughly 63% this year, a sharp rebound from the depths of the boycott. The company's turnaround strategy, launched by new CEO Michael Fiddelke after former CEO Brian Cornell stepped down, includes:

• Store refreshes
• Increased staffing
• More aggressive pricing

Target announced a plan in March to invest $2 billion in 2026, including $1 billion in additional operating investments. The company plans to open more than 30 new stores this year as part of its path to 300 new stores by 2035, while investing in over 130 planned full-store remodels.

Analyst Perspective

Bruce Winder, a retail analyst and former retail buyer, said inventory errors—such as the recent Prada and Gucci controversies—"can happen to the best of them."

"These things happen over time. I think the most important thing for Target, and they did it, was to quickly take accountability, quickly say sorry, acknowledge that this was a big mistake, and pull the product from the shelves," Winder said.

Boycott Organizers Remain Steadfast

Target boycott organizers in Minneapolis—including Nekima Levy Armstrong and community leaders Monique Cullars-Doty and Jaylani Hussein—remain steadfast in their divestment calls.

They have continued to press the company to reinstate its DEI programs and maintain its commitments to Black communities. They say the costume controversy serves as a refresher on their mission.

"It's important for people to understand that the Target boycott never ended; that it was indefinite from the beginning, unless and until Target reversed course on its decision to roll back diversity, equity, and inclusion," said Armstrong, an organizer of the national Target boycott.

"What we've seen is Target engaging in PR campaigns: recruiting high-visibility Black ministers to meet with them, partnering with (rapper and businessman) Jay-Z, all types of different shenanigans to deflect from the fact that they abandon their commitment to diversity, equity, and inclusion."