Sen. Bernie Sanders is intensifying his criticism of Nike Inc. (NKE), a globally recognized brand, focusing on the conditions faced by its workers within its complex supply chains. The core of Sanders’ argument centers around a meeting with a Nike factory worker named Dinar, who reportedly sews 222 labels per hour onto Nike products while earning just $202 per month. Sanders powerfully frames this situation as "corporate greed at its worst," highlighting the stark contrast between Nike’s staggering $51.4 billion revenue in 2024 and the minimal compensation afforded to the workers producing its goods. This figure stands in stark opposition to the considerable wealth accumulated by Nike’s founder, Phil Knight, whose net worth, according to the Bloomberg Billionaires Index, exceeds $31.2 billion. Sanders’ critique underscores a broader concern about income inequality and the exploitation of labor within global supply chains.

The Senator’s argument gains further weight considering the tariffs impacting Nike’s key manufacturing regions – Vietnam, China, and Indonesia – which faced reciprocal tariffs ranging from 32% to 46% due to President Trump’s "Liberation Day" tariffs. These tariffs, while subsequently lowered pending trade negotiations, significantly impacted Nike’s operational costs and supply chain dynamics. Nike’s stock performance has reflected these challenges, experiencing a year-to-date decline of 14.93% amid tariff-related trade tensions. Despite this downward trend, Nike’s shares were trading at $62.67 on Thursday, experiencing a slight decrease of 0.16%. Benzinga’s Edge Stock Rankings indicate a generally unfavorable assessment of the stock’s performance, particularly in the medium and long-term, although it shows relative strength in the short-term. The concerns surrounding Nike’s supply chains and labor practices are not new; they were previously brought to the forefront during the implementation of Trump’s tariffs.

Economist Peter Schiff used Nike as an example, arguing that the company wouldn’t establish factories in the U.S. due to the higher costs associated with tariffs. This highlights the critical role of inexpensive labor in maintaining Nike’s profitability. While Nike’s shares have faced challenges, they have shown some resilience in the short-term. Benzinga's Edge Stock Rankings provide crucial metrics for investors, and the company’s performance remains a subject of ongoing scrutiny. It’s important to note that Benzinga does not provide investment advice, and all rights are reserved. Investors should conduct thorough research before making any investment decisions.