Nike (NKE), the famous and popular shoe brand, is facing a new federal probe tied to its diversity programs after the Equal Employment Opportunity Commission (EEOC) moved to enforce a subpoena against the company. The EEOC said it is reviewing whether Nike unfairly treated white workers in hiring, layoffs, and career programs as part of its workforce diversity efforts.
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The agency said it is seeking records going back to 2018, including data on how Nike tracks race and how it selects workers for layoffs. In addition, the EEOC is reviewing 16 internal programs that it says may limit access based on race. However, at this stage, the agency has not cited any specific employee complaints tied to the probe.
Nike stated that it has not violated anti-discrimination laws and was surprised by the move. “This feels like a surprising and unusual escalation,” a company spokesperson said, adding that Nike has already shared thousands of pages of material and continues to cooperate.
Meanwhile, NKE shares climbed 5.40% on Wednesday, closing at $64.22.
Political Shift Raises Stakes
The case comes amid a broader push by the Trump administration to challenge what it has labeled illegal DEI practices across corporate America. EEOC Chair Andrea Lucas has openly supported this effort and has urged white men to report cases where they believe diversity policies caused harm.
Notably, the EEOC disclosed the subpoena publicly, which legal experts say is rare at this early stage. Labor attorney Christopher DeGroff said such actions are usually confidential and added that “at the investigative stage, no finding has been made.”
The probe was triggered in part by a complaint from America First Legal, a conservative legal group co-founded by Trump adviser Stephen Miller. The group has filed similar complaints against companies, including The Walt Disney Company (DIS), Starbucks Corporation (SBUX), and Salesforce (CRM).
What It Means for Investors
From an investor’s view, this issue is more about policy and oversight than core business results. There is no impact on sales, margins, or demand, and no ruling has been issued. Still, the case adds headline and reputational risk at a time when many companies are quietly reworking how they present diversity goals.
Nike, like many firms, expanded these programs after the death of George Floyd in 2020 and pledged $40 million to social justice efforts. However, since the Supreme Court ended affirmative action in college admissions in 2023, many companies have pulled back public DEI targets. For now, the Nike case remains an early-stage review rather than a legal judgment.
Is Nike Stock a Buy, Sell, or Hold?
On the Street, Nike boasts a Moderate Buy consensus view, based on 23 analysts’ ratings. The average NKE stock price target is $76, implying an 18.34% upside from the current price.
