If Target sales and stock drops because of their toilet/changing policies, does it prove the absence of capitalism? Not necessarily. Target's executives could be thinking long-term, and knowing that a brief decline in sales/stock might result, a generation or two later, in schoolchildren being taught that Target was a civil rights leader. Like, what if, in the future equivalent of all of those black and white Holocaust "I knew a survivor" interviews or MLK lunch-counter-type movies that they cram into American schoolchildren's heads one or two days per month of instruction, there are non-VR videos portraying Target as, essentially, "the only place a black person could get a sandwich, beloved of MLK" or "company executives saved millions of Holocaust victims by allowing them to hide out in the stockrooms."
In the business-mind of the wholly capitalist Target executive, then, Target's move could be internally coherent and logical. Maybe those people are wrong to make such a business decision, but it doesn't disprove capitalism in and of itself that Target made this policy which then hurt it. Given the education most Target executives would have had, what they did makes sense. Particularly if you believe that the world began with cavemen, transitioned to medieval castles, then moved to the Holocaust and Civil Rights after a brief period of statues and oil paintings in Europe, being the first retailer to proudly cater man/dachshund weddings isn't the act of a "social justice warrior," but rather, the intelligent plan of a wholly selfish executive who thinks that her stock will benefit more in the aggregate by being an early adopter of ultimately-successful trends. Whether or not Target accurately predicted the future in assuming that the future would consist of mandatory state educations extolling the Trans Rights Struggle in a series of standardized curriculum videos shown right after the Holocaust/MLK ones in classrooms across the U.S. is irrelevant. What matters for purposes of evaluating capitalism is that Target made such a prediction in its own interest. Ergo Target's decision does not prove a lack of capitalism.
Another possible explanation for Target's choice as capitalism-bolstering is that Target, in enacting its Terra 2016 toilet/changing policies, is acting not as a capitalistic predictor of future trends, but as a true capitalistic entity. The lamentably less intelligent take capitalism's boundaries as givens, but in fact, actual capitalism always becomes actual socialism, because--as this one discussed in Capitally Speaking--capitalism places a price on the government, and the government is the best possible asset for the capitalist to own, ergo capitalism will always become socialism, which is to say, dictatorship. He who establishes the market, the money supply, the rules of trade, et cetera, controls it, and the relevant questions are only briefly, if at all, "What kind of economy do we have," but rather, "Who benefits from our economy?" and "Who does the actual work?"
Under that more developed, more realistic rubric, Target's policy also makes sense. By taking this government-integrated approach--matching its corporate policy to academic, legislative, judicial, and executive trends--Target may appear to lose fiat currency in the short term, but, it helps mold public policy in a way that benefits the people it (Target and public policy) was designed to benefit in the first place. Oh, "Target" itself, the entity, may thrive, or it may crash and burn, and millions of poor saps with non-controlling stock may take a real hit, and a few insiders with controlling stock may take a paper hit, but, the crafting of society around a sexless, death-directed mitosal ideal will help the people whom "Target" was really designed to help. The people who want barely passable products, bland uniformity, architectural horror, and the still quiet of blackness forever, are achieving a selfish end; they are spending their capital, acquired through guile and hard work, in the service of something they want very much, and that investment decision is purest capitalism. It is capitalist to trade in currencies; it is capitalist to buy a well-functioning company, gut it, and sell its divisions at a profit, then watch those divisions falter and crumble: all those things are capitalism, and so too is Target's decision to invest in the future--whether the fool's prediction of social justice utopia, or the long war prediction of everdeath--by altering toileting in the service of a long-term gain.