MINNEAPOLIS — Target removed the "Kids' Glows Under Blacklight Circus Clown Halloween Costume" from sale on Monday following social media backlash. The retailer issued a statement apologizing for the costume, stating, "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."

The costume was sold under Target's seasonal Hyde and EEK Boutique brand. It consists of an orange-and-black outfit, black gloves, a miniature top hat, and a mask with an exaggerated grin and large teeth. Promotional images for the costume featured a Black child modeling the outfit.

Critics stated that the costume and its promotional imagery resembled racist caricatures from Jim Crow-era minstrel shows. "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 Rev. Jamal Bryant. Bryant stated that the incident shows Target lacks corporate diversity among decision-makers and needs concrete internal change.

Target stated in its apology that the situation is "especially hurtful for our Black guests, team members and partners" and that removing the costume is "an important first step" while the company reviews how the incident occurred. Nekima Levy Armstrong, a boycott organizer, criticized the company's broader strategy. "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 their decision to roll back diversity, equity, and inclusion," Armstrong said. She stated that Target is engaging in PR campaigns, including recruiting Black ministers and partnering with Jay-Z, to deflect from abandoning its commitment to diversity, equity, and inclusion.

Why It Matters

The removal of the costume occurs against the backdrop of Target ending its three-year diversity, equity, and inclusion program in January 2025, replacing it with a new "Belonging" strategy. As part of this rollback, Target 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. Target joined companies like Meta, Walmart, and McDonald's in rolling back diversity, equity, and inclusion efforts after President Donald Trump won the 2024 election.

Financial metrics indicate the stakes involved in brand controversies for the retailer. A national Target boycott organized by Minnesota civil rights activists resulted in a 33% fall in the corporation's stock prices and wiped out over $20 billion in market value. Target lost approximately $12.4 billion in market value between January and the end of February 2025 during activist-organized boycotts. Target's stock price fell from $137.40 on January 24, 2025, to $104.70 on March 15, 2025.

Timeline

Target faced criticism in 2023 for its handling of products in its Pride Collection. Target ended its three-year diversity, equity, and inclusion program in January 2025, replacing it with a new "Belonging" strategy. Target 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 as part of its DEI rollback.

Target announced a plan in March 2026 to invest $2 billion in 2026, including $1 billion in additional operating investments. Target's stock closed at $165.44 on August 21, 2026, reaching a 52-week high.

What's New

Brett Husslein stated that the roughly 5% drop in Target's shares reflects the market's view on the fragility of the company's competitive positioning when merchandising missteps or brand controversies occur. Sheletta Brundidge stated that Target's rollback of diversity initiatives resulted in fewer people in decision-making roles to identify potentially offensive products. Sheletta Brundidge stated that Target's apology did not move her and that the company continues to demonstrate its identity through its actions.

Tejal Patel, executive director of SOC Investment Group, stated that the incident is another example of Target losing trust with its consumer base and that such decisions can impact sales over the long term. Brett Husslein, an analyst at Morningstar, stated that the incident is the type of optical misstep Target wants to avoid as it repairs its brand reputation and that any headwind could lead to further market share losses.