The U.S. Equal Employment Opportunity Commission has served a subpoena enforcement action on Nike, requesting detailed records on hiring, layoff selection, promotion and mentoring programs dating back to 2018. The agency is probing whether Nike’s five-year DEI roadmap, which tied executive compensation to achieving 35% racial and ethnic minority representation in its U.S. workforce by 2025, resulted in systemic discrimination against white employees. Nike employed 76,600 people as of May 2025 and has already provided thousands of pages of documents to the EEOC, but the agency is seeking additional information on 16 specific development programs and on criteria used for layoff decisions.

Investor confidence has been dented by the federal probe and recent operational announcements. Over the past 12 months, Nike’s shares have declined 17.22% and currently trade 0.5% below their 20-day simple moving average and 3.5% below their 100-day average, highlighting short-term weakness. Technical indicators show a relative strength index of 38.94, in neutral territory, while the MACD remains below its signal line, signaling underlying bearish momentum despite occasional buying interest.

Analysts expect earnings per share of $0.30 in the next quarterly report, down from $0.54 in the prior year, and revenue of $11.25 billion compared with $11.27 billion year-over-year. Nike’s price/earnings multiple sits at 35.6x, reflecting a premium valuation relative to sector peers. To bolster margins, the company announced plans last week to cut 775 jobs at U.S. distribution centers, adding to the 1,000 corporate roles eliminated in the prior summer. These automation-driven reductions focus on major warehouses in Tennessee and Mississippi and aim to offset near-term cost pressures as wholesale channels are reset.