Using data from a sample of 6,130 workers employed in 743 stores of a large, U.S. retail organization, this study assessed whether diversity climate moderated mean racial‐ethnic differences in employee sales performance. Findings indicated Whites exhibited significantly higher sales performance than Hispanics but not Blacks, as moderated by diversity climate. As hypothesized, racial‐ethnic disparities disfavoring Blacks and Hispanics were largest in stores with less supportive diversity climates and smallest in stores with highly pro‐diversity climates. Financial analysis of these interactions revealed sizable increments in sales per hour in response to effective diversity management, with strong organizational bottom‐line implications. Limitations of the study and future research needs are noted.