Jefferies analysts have highlighted an improving brand momentum at Nike, pointing to double-digit percentage growth in North America sales year-over-year and a strategic inventory reduction of approximately 15% versus the prior quarter. This reset has alleviated margin pressure, with gross margin expanding by over 120 basis points in the most recent quarter. Jefferies maintained its Buy rating and reiterated a price target of 110, noting that tighter inventory levels and renewed consumer demand in key urban markets support a broader turnaround in the company’s performance.

In the third quarter, Y Intercept Hong Kong Ltd reduced its position in Nike by 88.2%, selling 44,942 shares and retaining 6,012 shares valued at $419,000 at quarter end. By contrast, Vanguard Group increased its holdings by 0.6% to 113.8 million shares (worth $8.09 billion) after acquiring 672,705 additional shares, while State Street raised its stake by 2.8% to 59.15 million shares ($4.23 billion). Invesco boosted its position by 66.1% to 12.16 million shares ($863.6 million), and Jennison Associates added 3.52 million shares, bringing its total to 11.84 million shares ($825.5 million). Norges Bank also initiated a new position valued at $835.1 million. Institutional and hedge fund ownership now represents 64.25% of Nike’s total shares outstanding.

The U.S. Equal Employment Opportunity Commission has opened a formal investigation into Nike’s diversity, equity and inclusion programs, alleging a pattern of disparate treatment against white employees. The EEOC has subpoenaed records dating back to 2018, including layoff selection criteria, mentoring program rosters and executive compensation tied to diversity metrics. Nike’s five-year DEI roadmap, announced in 2021, targeted 35% minority representation in its U.S. workforce by 2025; at the end of fiscal 2025 the company employed 76,600 people. Investors should monitor potential remedies, associated costs and any shifts in management commentary as the investigation progresses.