The trend: Many brands are keeping their heads down this Pride Month amid concerns about backlash from the Trump administration and critics of diversity, equity, and inclusion (DEI) initiatives.

Roughly 2 in 5 companies plan to reduce Pride-related engagements this year, while none expect to increase them, according to an executive survey conducted by Gravity Research.

Keeping a low profile: Companies’ reluctance to publicize their Pride plans reflects a profound desire to steer clear of political controversy—a concern that, for now, outweighs the risk of consumer boycotts.

• 61% of executives cite pressure from the Trump administration as a key influence behind their decision to adjust their Pride strategy, while just 7% are worried about backlash from progressive consumers.
• Roughly 25% of corporate donors to New York City’s Pride celebrations have canceled or reduced their contributions this year, per The New York Times. Former sponsors Mastercard, Citi, Pepsi, Nissan, and PwC opted to sit out this year’s parade—a clear sign that companies are nervous about publicly associating with LGBTQ+ causes.
• Even those that aren’t making major changes to their Pride Month investments are keeping a low profile this year. That includes Macy’s, which is again fundraising for The Trevor Project and participating in Pride events, but without an official announcement.

A complex situation: While the corporate backtracking on Pride Month is undeniable, these moves don’t necessarily reflect declining support for the LGBTQ+ community. “I do see there’s pivoting happening,” Sarah Kate Ellis, president of GLAAD, told CNN. “What I don’t see is corporates walking away from the LGBTQ community,” she added, referencing cautionary tales like Bud Light and Target.

It’s no surprise that retailers are trying to avoid Target’s fate: The company continues to suffer as it tries to find a middle ground between showing its commitment to DEI principles and appeasing activists. While the retailer is selling its Pride collection in select stores and online, its assortment is smaller and less prominently displayed than in previous years—and the response so far has been tepid. Its scaled-back initiatives risk intensifying the consumer backlash and potentially hurting sales further at an extremely inopportune moment.

By contrast, companies like Levi Strauss and Costco that have stuck to their DEI commitments are thriving—a sign that consumers are rewarding brands that reflect their values.

• Levi Strauss is fully leaning into Pride this year, touting its “decades of solidarity with the LGBTQ+ community” in a pointed statement announcing the launch of its Pride collection and initiatives including Pride parade sponsorships and donations.
• While Costco hasn’t announced any specific Pride plans, the retailer’s steady sales gains stand in stark contrast to Target’s continued declines.

Our take: Keeping silent during Pride Month might help retailers avoid unwanted government scrutiny, but it won’t win them any favors from consumers, who increasingly choose to purchase from companies that reflect their personal values. It certainly won’t endear companies to the roughly 1 in 11 US adults who identify as LGBTQ+, according to a February Gallup poll—which includes 23.1% of Gen Zers ages 18 and over.

But brands that can withstand the pressure and demonstrate their commitment to DEI stand to win deeper brand loyalty from the LGBTQ+ community and its many supporters.