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Business Insider
a day ago
- Business
- Business Insider
Companies are dialing back their Pride Month celebrations — and angering both the left and the right
Corporate Pride is looking a little less proud this year. Companies seem to have followed a common Pride Month playbook for the past several years. The checklist included changing social media avatars to rainbow logos, sponsoring parade floats, making donations, or casting ads a little differently from the rest of the year. This June, corporate Pride seems quieter amid a combination of cultural and political pressure against DEI in general, and the LGBTQ+ community in particular. Brands have been dropping out of sponsoring Pride parades across the country, Pride merchandise collections are getting smaller, and Fortune 500 social-media avatars appear largely unchanged. More broadly, companies have pulled back on diversity, equity, and inclusion initiatives, or at least calling them DEI. The shift has stirred up criticism from both liberals and conservatives. "We're sort of facing a tidal wave of backlash against something that many companies have said they support," Ike Silver, a marketing professor at the University of Southern California's Marshall School of Business, told Business Insider. This has made Pride Month a bigger balancing act for companies this year, particularly those that have openly embraced it in the past. "There's a little bit of a damned if you do, damned if you don't sort of element to this," said Graham Nolan, a PR professional who cofounded Do the Werq, a platform for queer representation in the marketing industry. Brands face new backlash over their approaches to Pride Month Pride Month had evolved over the past decade into something that companies perhaps felt obligated to participate in at the risk of appearing out of step with societal norms, Silver said. "It's really more about jumping on the bandwagon," he said, "if you're not getting a boost from it, you might as well not court the backlash." But as reactions to Target — and more recently BarkBox — have shown, brands that have openly embraced Pride Month in prior years face considerable risk stepping back (or even appearing to pull back) from it. Target was one of the most prominent major consumer brands supporting LGBTQ+ Pride. Two years ago, it included Pride merchandise across its stores, but this year and last, it offered a smaller, gentler selection in about half of its locations. A company spokesperson said Target also sponsors local events. "We are absolutely dedicated to fostering inclusivity for everyone," the spokesperson said in a statement to BI. BarkBox found itself in hot water this month when an employee's internal communication suggested the company pull promotions for its Pride merch, comparing them to MAGA products. The leaked message sparked outrage and an apology from founder and CEO Matt Meeker, who said the company stands by its Pride products. Companies haven't had the best time sticking the landing with Pride Pride Month, Nolan said, became "more a checklist of corporate fears than it was a checklist of consumer desires." People never asked for brands to add rainbows to their logos, for example, Nolan said. Some companies have faced pressure from more left-wing groups that accused them of "rainbow washing," or capitalizing on LGBTQ+ people without providing a tangible benefit to the community. Pride Month became more of a minefield in the last two years as conservatives took aim at Bud Light's partnership with transgender influencer Dylan Mulvaney, and followed quickly by Target facing blowback for its 2023 Pride merchandise collection. While Bud Light and Target walked back their LGBTQ+ campaigns, the retreats didn't exactly earn them goodwill from either side of the political spectrum. The division between the sides has only grown more pitched under Donald Trump's second presidency. For brands, it can feel like consumers "who oppose the stance see any whiff of support as negative, and those that support the stance will only give you credit if they think that you're really in it," Silver said. "They won't sort of reward these soft steps." Nolan said crafting the right message is increasingly difficult, especially since the very act of speaking to one group can de-emphasize another. "When it's not perfect, what you get is conservatives who are angry about the fact that the work exists, and then you've got liberals who go, 'Yeah, this is a nice ad, but I know this about your hiring practices,'" he said. New risks change the calculus — and provide new opportunities Beyond the growing political polarization, the issue is further complicated for companies by the threat of government pressure. Trump has shown a willingness to go after companies because of their diversity policies. While taking a stand in the face of real risk can make a company's motives seem more sincere (think Costco or Ben & Jerry's founders, which have defended their stances on diversity), Silver said consumers don't typically punish companies that remain truly neutral. Whether they choose to publicly embrace Pride Month or not, Nolan hopes companies will strategize behind the scenes about strengthening their relationships with the LGBTQ+ community year-round. With shoppers weighing in on social media and scrutinizing companies' moves over the past months, it's clear that shifting positions in either direction can be risky. "When you flip-flop, you lose the people who supported you when you are taking a position," Silver said. "And you don't necessarily regain the people who are against your position."
USA Today
2 days ago
- Business
- USA Today
BarkBox employee compared Pride to MAGA in leaked memo. The CEO apologized.
BarkBox employee compared Pride to MAGA in leaked memo. The CEO apologized. "I do not agree with the content of the message," BarkBox founder and CEO Matt Meeker said. "It wasn't good, it doesn't reflect our values and I'm deeply sorry that it happened." Show Caption Hide Caption Organizers say political pressure is motivation to continue celebrating Pride Organizers say political pressure is motivation to continue organizing and celebrating Pride, although some corporate support dwindles. Less than a week into Pride Month, BarkBox is receiving backlash for a leaked memo that compares an LGBTQ+ themed pet collection to the Make America Great Again movement. Now the monthly dog subscription service's CEO is looking to make amends. The memo, shared to Reddit this week, informed a group of employees that the monthly dog subscription service would cease advertisements for its Pride collection, which includes several Pride and rainbow accessories. The memo was shared by one employee to a small group of others, BarkBox confirmed to USA TODAY. "While celebrating Pride is something we may value, we need to acknowledge that the current climate makes this promotion feel more like a political statement than a universally joyful moment for all dog people," the memo shared on Reddit reads. "If we wouldn't feel comfortable running a promotion centered around another politically charged symbol (like a MAGA-themed product), it's worth asking whether this is the right moment to run this particular campaign." BarkBox CEO: 'It wasn't good' In a social media statement shared on June 4, BarkBox founder and CEO Matt Meeker apologized for the leaked memo. "I do not agree with the content of the message," Meeker wrote. "It wasn't good, it doesn't reflect our values and I'm deeply sorry that it happened." As of June 6, BarkBox's Pride collection was promoted on the BarkBox website. Since the leaked memo, Meeker shared that 100% of the proceeds from the collection will be donated to the LGBTQ resource, Kaleidoscope Youth Center in Columbus, Ohio. DEI: What fueled the Target DEI boycott? The answer may surprise you Pride Month: What are the safest places for gay and trans people? See where your state ranks What else did the BarkBox memo say? "After some thoughtful discussion today with leadership, we've made the decision to pause all paid ads and lifecycle marketing pushes for the Pride kit effective immediately," the memo shared on Reddit begins. "This isn't about backing away from support − it's about tone and ensuring our marketing remains inclusive and welcoming to everyone in our community. Right now, pushing this promo risks unintentionally sending the message that 'we're not for you' to a large portion of our audience," the memo concludes. BarkBox did not confirm when the memo was sent, or by who. What is BarkBox's Pride collection? BarkBox's Pride collection features more than 25 LGBTQ+ themed toys, including a rainbow tug toy, "slay the drag queen" plush and "gaylien," an alien plushy with a T-shirt that reads, "Take me to your leather," a reference to the queer leather community. These items an be added to any BarkBox for an upcharge. A typical BarkBox, which is $24 a month, includes two toys and two treats each month. More Pride Month: Trump's actions on LGBTQ+ issues in Pride Month criticized as 'bullying' by advocates Memo leak follows other national brands moving away from DEI The memo follows a string of companies who have eradicated or pulled back on DEI − diversity, equity and inclusion − programs, including Target, Walmart, Amazon and McDonald's. The DEI rollbacks began after President Donald Trump took office. As soon as he could, the president issued executive orders to dismantle DEI by putting pressure on federal contractors to end "illegal DEI discrimination" and direct federal agencies to draw up lists of companies that should be investigated for their DEI policies. And while Trump has been successful in part during his first 100 days in office, there are still countless major companies publicly backing DEI, including Costco, American Express, Apple and Levi's. Contributing: Jessica Gunn, USA TODAY Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@
Yahoo
3 days ago
- Business
- Yahoo
BarkBox CEO apologizes for leaked message exposing paused Pride ads — but they're still paused
BarkBox's CEO is "deeply sorry" for a leaked message that revealed the company's plans to forgo advertising for its LGBTQ+ Pride collection — but they appear to have followed through on those plans. Keep up with the latest in + news and politics. The dog product subscription service came under fire earlier this week after a message from an employee was shared on social media, exposing the company's intentions to "pause all paid ads and lifestyle marketing pushes for the Pride kit effective immediately." The author referred to LGBTQ+ existence as "another politically charged symbol," comparing it to being a supporter of Donald Trump. "While celebrating Pride is something we may value, we need to acknowledge that the current climate makes this promotion feel more like a political statement than a universally joyful moment for all dog people," the message reads. "If we wouldn't feel comfortable running a promotion centered around another politically charged symbol (like a MAGA-themed product), it's worth asking whether this is the right moment to run this particular campaign." "Right now, pushing this promo risks unintentionally sending the message that 'we're not for you' to a large portion of our audience," the author concluded. After backlash online — including users unsubscribing and threatening boycotts — CEO Matt Meeker posted a statement on BarkBox's Instagram apologizing for the message. He insisted that "the Pride Collection is still available" and that the company has "no plans to remove them," but did not address the advertising roll back. "I apologize. A few days go, an internal message from a BARK team member was released on social media," Meeker wrote. "The message was disrespectful and hurtful to the LGBTQIA+ community, and as the CEO of BARK, I'm responsible for that. I do not agree with the content of the message. It wasn't good, it doesn't reflect our values, and I'm deeply sorry that it happened." Meeker added that instead of donating a portion of the profits from the Pride Collection to a "worthy organization," BarkBox would donate "100 percent of the revenue" this year. As of publishing, the Pride Collection does not appear on BarkBox's home page, nor is it listed under the website's "Monthly Themes" tab. There are no posts advertising the collection on the same company Instagram page that Meeker issued his apology on. A spokesperson for BarkBox told The Advocate that the Pride Collection has been advertised on the website "in the yellow banner at the top of the page." An Internet Archive snapshot of the website from yesterday shows no banner, suggesting it was added in the past 24 hours. Collections BarkBox seemingly considers not "politically charged" include cannabis leaf merchandise for the 420 holiday, a "fleshlight" pig in a blanket toy, and a Harry Potter collection — when writer J.K. Rowling has been using her personal profits to fund legal cases tat restricted the rights of transgender people.
New York Post
3 days ago
- Business
- New York Post
BarkBox CEO apologizes after leaked memo exposes plan to axe ‘politically charged' Pride marketing
BarkBox CEO Matt Meeker apologized after a leaked message from a staffer on Reddit exposed the company's plans to axe marketing for its Pride campaign out of fear it would 'feel more like a political statement.' The subscription service delivers dog toys and treats to customers' door fronts monthly, and has been selling Pride-themed products as optional add-ons for the past four years. 'While celebrating Pride is something we may value, we need to acknowledge that the current climate makes this promotion feel more like a political statement than a universally joyful moment for all dog people,' a staffer said in the leaked message. 4 BarkBox sells dog toys and treats in a monthly subscription service. Sergi Alexander The employee argued that if BarkBox wasn't comfortable promoting 'another politically charged symbol (like a MAGA-themed product), it's worth asking whether this is the right moment to run this particular campaign.' Meeker, who co-founded the $236 million company in 2011, on Wednesday confirmed the leaked message was from a BarkBox employee and issued an apology on the company's Instagram account. 'The message was disrespectful and hurtful to the LGBTQIA+ community, and as the CEO of BARK, I'm responsible for that,' Meeker wrote. 'I do not agree with the content of the message. It wasn't good, it doesn't reflect our values, and I'm deeply sorry that it happened.' He said BarkBox is still selling Pride-themed dog products on its site, though he did not comment on whether the company killed its marketing push for the collection. BarkBox did not immediately respond to an inquiry about whether the marketing campaign was canceled. 4 BarkBox CEO Matt Meeker apologized on Wednesday over the leaked message. REUTERS The company donates a portion of the profits from the collection to an LGBTQIA+ nonprofit each year, Meeker said. It will up that commitment to 100% of the revenue this year, he added. His apology followed swift backlash online from customers and former employees who slammed the message as offensive and hurtful. 'So @barkbox compared being LBGTQ+ to being MAGA, so if you give a f— about queer people, cancel your subscription today!' one user wrote in a post on X. 4 A leaked BarkBox employee message that circulated on Reddit. Reddit Another wrote: 'My former employer paused all marketing on Pride toys and cancelled donating the proceeds to a great org because… *checks notes* … a single bigot doesn't understand how BarkBox works? You literally have to CHOOSE and PAY MORE for the Pride toys.' BarkBox is just the latest company entrenched in a scandal over its marketing of Pride products. Mass boycotts against Target for a Pride collection that included kid's clothing and Bud Light for partnering with transgender influencer Dylan Mulvaney hurt the company's bottom lines. Pride events taking place this month have seen some major sponsors retreat as they fear retribution from customers and the Trump administration, which has been targeting diversity, equity and inclusion programs. 4 A BarkBox subscription box filled with movie-themed dog toys and treats. BarkBox Longtime sponsors of New York City's Pride March, including Mastercard, Citi, PepsiCo and Nissan, this year chose not to renew the funding. 'This isn't about backing away from support – it's about tone and ensuring our marketing remains inclusive and welcoming to everyone in our community,' the leaked BarkBox message said. 'Right now, pushing this promo risks unintentionally sending the message that 'we're not for you' to a large portion of our audience.'
Yahoo
4 days ago
- Business
- Yahoo
Bark (NYSE:BARK) Misses Q1 Sales Targets, Stock Drops
Pet products provider Bark (NYSE:BARK) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 5% year on year to $115.4 million. Next quarter's revenue guidance of $100 million underwhelmed, coming in 21.6% below analysts' estimates. Its non-GAAP profit of $0.01 per share was in line with analysts' consensus estimates. Is now the time to buy Bark? Find out in our full research report. Revenue: $115.4 million vs analyst estimates of $128.2 million (5% year-on-year decline, 9.9% miss) Adjusted EPS: $0.01 vs analyst estimates of $0 (in line) Adjusted EBITDA: $5.23 million vs analyst estimates of $3.08 million (4.5% margin, 69.5% beat) Revenue Guidance for Q2 CY2025 is $100 million at the midpoint, below analyst estimates of $127.5 million EBITDA guidance for Q2 CY2025 is $0 at the midpoint, below analyst estimates of $1.21 million Operating Margin: -5.7%, in line with the same quarter last year Free Cash Flow was -$11.99 million compared to -$3.17 million in the same quarter last year Market Capitalization: $229.1 million Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Bark grew its sales at a decent 16.6% compounded annual growth rate. Its growth was slightly above the average consumer discretionary company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Bark's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 4.9% over the last two years. This quarter, Bark missed Wall Street's estimates and reported a rather uninspiring 5% year-on-year revenue decline, generating $115.4 million of revenue. Company management is currently guiding for a 14% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.9% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Bark's operating margin has risen over the last 12 months, but it still averaged negative 8.3% over the last two years. This is due to its large expense base and inefficient cost structure. In Q1, Bark generated a negative 5.7% operating margin. The company's consistent lack of profits raise a flag. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Although Bark's full-year earnings are still negative, it reduced its losses and improved its EPS by 100% annually over the last three years. The next few quarters will be critical for assessing its long-term profitability. In Q1, Bark reported EPS at $0.01, up from $0 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Bark's full-year EPS of negative $0.02 will reach break even. We were impressed by how significantly Bark blew past analysts' EBITDA expectations this quarter. On the other hand, its revenue missed, and its revenue and EBITDA guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 12.9% to $1.18 immediately after reporting. The latest quarter from Bark's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
