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For the last several years, Pride Month was a splashy marketing event for big brands. Stores adorned windows with rainbow flags, displayed LGBTQ-themed t-shirts and coffee mugs at their entrances, changed their logos on social media accounts, and spotlighted donations to LGBTQ rights groups.But this Pride Month, many retail chains and brands are going quiet.Companies are treading lightly, avoiding prominent campaigns and visible public support. Thirty-nine percent say they plan to scale back public Pride Month engagements this year, according to a survey of more than 200 corporate executives by Gravity Research, a risk management advisory. That includes sponsoring Pride events, posting supportive messages of LGBTQ rights on social media and selling Pride-themed merchandise.Consumer brands are wary of provoking right-wing customers and activists, and they fear reprisals from President Donald Trump’s administration. Federal agencies have threatened to investigate companies with diversity, equity and inclusion programs.Many businesses are tightening their advertising spending due to economic uncertainty over Trump’s tariffs. But businesses cited pressure from the Trump administration as the primary reason for changing their Pride Month approach, according to the survey.“It’s clear that the administration and their supporters are driving the change,�� said Luke Hartig, the president of Gravity Research. “Companies are under increasing pressure not to engage and speak out on issues.”The subdued approach marks a shift for businesses, which used to turn the annual June celebration of LGBTQ Americans into a branded holiday. It’s part of a broader pivot in corporate America, with many businesses scrapping some of their programs to advance diversity in the workplace under pressure from the Trump administration and Republican activists.Advocates for gay, lesbian and transgender Americans say the Trump administration’s opposition makes it harder for businesses to compete, innovate and attract talent. They also warn that companies risk losing business by downplaying support for their growing number of gay, lesbian and transgender customers and workers. The proportion of American adults who identify as LGBTQ has risen to 9.3% of the population.“By weaponizing federal agencies like the EEOC and the Justice Department to intimidate companies that support LGBTQ+ inclusion, this administration is creating an anti-business, anti-worker atmosphere,�� said Eric Bloem, the vice president of corporate citizenship at the Human Rights Campaign Foundation.Many businesses have stopped participating in the Human Rights Campaign’s scorecard on corporate policies and benefits for LGBTQ employees due to backlash.“Companies that show up only when it’s convenient, or backtrack the moment there’s political pressure, risk losing trust and credibility,�� Bloem said.Bud Light and TargetCompanies are actively preparing for Pride-related backlash this year from conservative activists and consumers.Sixty-five percent of companies in Gravity Research’s survey said they were preparing strategies to respond to blowback. A growing number of chains, including Walmart, Target and Kroger, have also been warning investors about the risks of consumer boycotts over corporate positions on social issues.Anger from the right over Bud Light and Target’s marketing efforts, in particular, has had a chilling effect on corporate strategies for Pride Month.Bud Light sales tanked in 2023 after the company’s partnership with transgender influencer Dylan Mulvaney sparked anti-trans backlash and boycotts. Bud Light’s tepid response also angered LGBTQ rights advocates.In 2023, activists and customers on the right attacked Target on social media for its LGBTQ-themed merchandise during Pride Month. Target employees faced threats over items such as bathing suits designed for transgender people, and the company removed them from stores. Misinformation spread on social media that the swimsuits were marketed to children, which they were not.The backlash led to a drop in sales and lawsuits from Republican-aligned legal groups.Last year, Target sold Pride products in fewer stores and offered the full merchandise collection online.Muted displaysTarget is again taking a muted approach to Pride Month this year.In “select stores,�� Target is selling a “multi-category collection including home, pets, books, vinyl and adult apparel and accessories�� to celebrate Pride, the company said in an email to employees viewed by CNN. Target is selling the full Pride product selection online.“We are absolutely dedicated to fostering inclusivity for everyone �� our team members, our guests, our supply partners, and the more than 2,000 communities we’re proud to serve,�� a Target spokesperson said. “As we have for many years, we will continue to mark Pride Month by offering an assortment of celebratory products, hosting internal programming to support our incredible team and sponsoring local events in neighborhoods across the country.”But Target’s Pride merchandise is limited and displayed less prominently in stores than in previous years, said one Target senior leader who spoke under the condition of anonymity because they were not authorized to speak publicly. Target store employee and customer excitement for Pride Month has dissipated as a result of the company’s shift, according to the senior leader.“It feels like we have catered to the direction of the administration,�� this person said.Other companies are also dialing back public pronouncements, donations and merchandise in support of Pride Month.Last year, Kohl’s launched a “Pride capsule collection�� of merchandise and donated $100,000 to The Trevor Project, a suicide prevention and crisis intervention organization for LGBTQ youth.“As we use this month to embrace love in all forms, we simultaneously create more spaces for members of the LGBTQIA+ community to live out loud,�� Michelle Banks, Kohl’s-then chief diversity, equity & inclusion officer, said in a news release. (Banks is now Kohl’s chief inclusion and belonging officer.)Kohl’s has not announced any Pride Month plans this year and did not respond to CNN’s requests for comment.Macy’s last year touted that it hosted a donation campaign for The Trevor Project, spotlighted LGBTQ-owned brands, and set up displays in select Macy’s windows and at local Pride marches nationwide.Macy’s is supporting Pride events this month in a similar way, including participating in Pride events nationwide and raising money for The Trevor Project. But unlike previous years, the company is not making official announcements about its plans.Nordstrom, Gap and several other brands that highlighted their Pride Month efforts last year appear not to have repeated them this June. The companies did not respond to CNN about their plans.Working behind the scenesBut a quieter marketing approach to Pride Month does not necessarily mean companies are abandoning support for LGBTQ employees or customers.“I do see there’s pivoting happening (for Pride Month). What I don’t see is corporates walking away from the LGBTQ community,�� said Sarah Kate Ellis, president of advocacy group GLAAD. “They don’t want to be caught in the crosshairs of this presidency, and they don’t want to become the headline like Target or Bud Light.”Many companies are instead working behind the scenes to engage their LGBTQ employees and strengthen employee recruitment and retention strategies.Just 14% of companies reported plans to reduce internal engagement during Pride Month, according to Gravity Research. Corporate employees are providing counter-pressure to keep brands active on LGBTQ issues.“Companies are going deeper and wider, rather than supporting an event,�� Ellis said. “They’re finding better ways to thread their work supporting the LGBTQ community into their organizations.��