Justin Sullivan/Getty Images News
Nike (NYSE:NKE) was unchanged in the postmarket after news that Canada is investigating allegations of Uyghur forced labor in China in its supply chains and operations.
The Canadian Ombudsperson for Responsible Enterprise launched the investigation after complaints were filed by a coalition of 28 civil society organizations in June 2022.
An initial assessment report details allegations that Nike (NKE) has supply relationships with Chinese companies identified as using or benefitting from the use of Uyghur forced labor, the agency said. Nike told the agency they no longer have ties with those companies.
The Canadian agency said it will publish assessment reports on 11 other complaints in the coming weeks.
Last month, Nike (NKE) missed expectations on EPS for the first time in three years and set cautious guidance. Margins also fell compared to last year, due in part to a higher level of markdowns.
Wall Street analysts are 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.