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MINNEAPOLIS, Minn. — Target says sales are down and it is lowering expectations for investors.

The Minneapolis-based discounter’s second-quarter net income fell nearly 10 percent, though that was better than what most had expected.

Customer traffic fell for the first time in a year and a half.

The company did not point out one particular issue, but critics wonder if it has to do with the company’s transgender bathroom stance.

In April, the company said customers could choose which bathroom they used depending on the gender with which they identify.

Chief financial officer Cathy Smith said the backlash hasn’t had a “material” impact on sales, but some customers are still upset. “We are listening to our guests,” she said. Target is investing $20 million in building single-stall bathrooms in stores.

The company is planning to spend $20 million to build single-stall bathrooms.

Target says 1,400 of its 1,800 stores already have such an option and the rest will by early 2017.

Boycott leaders, who have collected 1.4 million signatures online, have claimed their efforts to pressure Target is taking a bite out of sales.

“We’re confident that our boycott has played a significant role in Target’s financial results that came out today,” said Walker Wildmon, assistant to the president of the American Family Association, which says it promotes traditional moral values.

Wildmon says Target’s policy poses a risk to children and women using women’s rooms, a charge denied by LGBT advocates.

Boycott leaders had urged Target to install the private restrooms at all locations, but they advocated that the store’s policy be changed so that transgender customers and employees no longer be allowed into the bathroom and dressing rooms of their choice.

“This doesn’t completely answer our concerns,” said Wildmon.

In July, a transgender woman was accused of videotaping an 18-year-old in a Target fitting room admitted to detectives that she had made videos in the past of women undressing.

To boost sales and traffic, Target plans to increase marketing for its essentials and work with key vendors like Apple to push more innovation and to also improve presentations.

Apple product sales were down 20 percent and the electronics department was a “significant drag,” Chief Executive Brian Cornell said.

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