Nike is experiencing a downturn. They've enlisted Kim Kardashian to provide assistance.
Nike's teaming up with Kardashian's shapewear brand, SKIMS, for a fresh activewear brand named NikeSkims, they announced Tuesday. This joint venture aims to shake up the global fitness and athletic apparel industry, promise better-than-ever innovations for female athletes. The specifics were scant at first, like pricing and visuals. Yet, it'll debut first in the US this Spring online and at select retailers, with a global rollout set for 2026.
Such partnership, marked Kardashian's first major collaboration with a company, is new territory for Nike. They usually either acquire companies or tap renowned athletes like Jordan for apparel. The financial details remained secret. Nike acknowledges that SKIMS pitched the concept, but they sought something more substantial. As a result, NikeSkims was born, stated the press release, promising an extensive collection of training apparel, footwear, and accessories.
While Nike may have the skills for standalone women's apparel, retail analyst Neil Saunders of GlobalData Retail suggests they could use a boost in the activewear market. Nike competes fiercely against brands like Lululemon and Alo, but this sector is a growth opportunity as consumers adopt more conscious buying habits.
Kardashian's SKIMS has skyrocketed since its launch, valuing the company at a staggering $4 billion by July 2023. SKIMS caters to everyday wear and offers a men's lineup and partnerships, including major sports leagues and Team USA for the Paris Olympic Games.
Nike, on the other hand, faces a tough battle against emerging brands like Hoka and On. In addition, customers are favoring experiences and basics over pricey sneakers and clothing. Nike adjusted leadership with a new CEO to tackle these challenges, reporting an 8% sales drop in Q3. However, Nike's share prices soared by nearly 3% upon announcing the partnership with Kardashian, while Lululemon's tumbled in response.
Nike and SKIMS share a common goal to empower active women with their unique blend of performance and design. The duo's tireless pursuit to disrupt the industry has sparked excitement amidst analysts, fans, and industry watchers alike.
This partnership between Nike and Kardashian's SKIMS marks a significant departure for Nike, as they typically engage in acquisitions or collaborate with renowned athletes like Jordan for apparel. The financial details of the NikeSkims venture remain undisclosed, but Nike sought something more substantial after SKIMS pitched the concept. By 2026, the joint venture aims to expand globally, offering an extensive collection of training apparel, footwear, and accessories, setting new standards in the industry.
