Nike has not changed after the Chinese forced labor investigation was launched by Canada
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Nike (NYSE:NKE) was unchanged in the postmarket after news that Canada is investigating allegations of forced Uyghur labor in China in its supply chain and operations.
That Canadian Ombudsman for Responsible Enterprises launched an investigation after the complaint was filed by a coalition of 28 civil society organizations in June 2022.
A preliminary assessment report details allegations that Nike (NKE) has supply links with Chinese companies identified as using or benefiting from the use of forced Uyghur labour, the agency said. Nike told the agency that they no longer have any relationship with the company.
The Canadian agency said it would publish assessment reports on another 11 complaints in the coming weeks.
Last month, Nike (NKE) missed expectations on EPS for the first time in three years and set a cautious path. Margins also fell compared to last year, partly due to higher markdown rates.
Wall Street analysts were generally positive on the stock, which has 17 Strong Buy ratings, eight Buy ratings, 10 Holds and two Strong Sells.
NKE is down more than 10% year-to-date.
