The stock price of Nike Inc (NKE) has fallen by over 3.88% today till the late morning trading session. The stock closed at $66.22 on Friday.
The Oregon based company is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses.
Inside the Tiger Woods Center at Nike Inc. headquarters, hundreds of employees gathered on March 20 to hear a message from top executives: We need to change.
The event, part of an initiative to encourage men to be better allies for their female co-workers, happened five days after a leadership shake-up that came about after employees shared concerns about representation of women in the company’s top ranks, women’s pay and a culture some former employees have described as a boys club.
Among the panelists was Elliott Hill, a 30-year Nike veteran who had been promoted in the shuffle to president of consumer and marketplace. He told the crowd about his Texas upbringing by a single mother, according to one person in attendance.
“I’m not here because of the brand or because of the athletes or because of the product,” Mr. Hill said, according to the person. “I’m here because of the people.” He and Michael Spillane, another top Nike executive, told the group that the company needed to create a better environment for its employees.
Nike, maker of the world’s best-selling sportswear, built its global empire through deft marketing that made competitiveness cool. Interviews with current and former employees say culture problems have persisted at the company for years. Some Nike veterans say when they tried to seek help for issues related to the work environment, they found human resources leaders unhelpful or in some cases disrespectful.
Nike says it is conducting a review of its human resources department and instituting mandatory manager training.
“When we discover issues, we take action. We are laser-focused on making Nike a more inclusive culture and accelerating diverse representation within our leadership teams,” Chief Executive Mark Parker said in a statement.
Mr. Parker in a staff memo earlier in March said the company received complaints of inappropriate behavior. In the memo, he also said Trevor Edwards, who had been widely considered the next CEO, was resigning his position immediately and would remain at the company until August. Additionally, Jayme Martin, a charismatic deputy of Mr. Edwards, left the company. Mr. Edwards and Mr. Martin didn’t respond to requests for comment.
Our analysts have given a “HOLD” rating to Nike’s stock. Despite the slight fall this week, the current situation looks optimistic. The current holders of this stock are advised not to sell it yet.