This is a prime example of how large institutions, such as multi-national corporations, can be harmed by self-interested behavior by the individuals occupying key positions of decisional authority. In the wake of the 2008 financial crisis, there was much discussion of how individual traders' bonuses encouraged them to assume massive amounts of risk... with all the risk being held by their employer banks, while their individual gains were immediate and non-contingent on how that risk played out over the long run.
Here, the individual CEO made a business decision some time ago to engage in some "woke marketing." No doubt he believed that "the times have changed," and that the market would reward a "courageous, socially-responsible" stand by a merchant, with the larger portion of the market that dislikes AR's outweighing the disgruntled gun-oriented customers. That turned out to be a cluster of bad business decisions.
The choice now is to either rescind that set of business decisions and try to get back to where they were, or to, as the OP put it, "double down." Here's where the individual/executive and corporate/shareholder interests really diverge. It might well be a good business decision to try to undo what was done, but that would require that the individual executive (the CEO here) acknowledge that his prior business judgment was wrong. It's not that hard to do the math on what those prior decisions, if they were wrong, have cost the shareholders in terms of profit, and not that difficult to do a reasonable projection of what the shareholder value/market cap impact has been. Those are not small numbers. If the CEO admits he was wrong and cost the company a few tens or hundreds of millions of dollars, he will likely be fired. So he has no self-interested choice but to press ahead and hope and pray that something comes along to financially rescue his enterprise... or at least cash his paychecks as long as possible, and perhaps establish some "street cred" for an ideological (rather than market-based) job in the future.
Securities class actions are pretty hard to win these days, but it would sure be fun to see a lawsuit play out.