Nike’s New Partnership with Kim Kardashian’s Skims

Nike’s share price suffered a steep decline (around 25% in 2024), reflecting broader financial struggles and strategic questions for the sportswear giant . In response, Nike has pursued bold moves – notably a new partnership with Kim Kardashian’s Skims – to reinvigorate its business.

Nike’s stock slump in 2024 can be traced to multiple converging challenges. By late 2024, NKE shares were down roughly 25–30% for the year, vastly underperforming the market. After a pandemic-era boom, Nike’s revenue growth stalled and turned negative. The company reported declining sales across all regions and channels – e.g. a 10% year-over-year revenue drop in fiscal Q1 2024, with Nike’s own digital sales down 20% and overall Nike Direct (DTC) revenue down 13% . Even the normally strong China market saw unexpected softness. Worse, Nike shocked investors with weak forecasts, warning of a 10% sales decline for the next quarter (far steeper than the ~3% drop expected). This gloomy guidance – attributed to continued e-commerce weakness and an “aggressive” product overhaul – amplified market concerns.

A tough macro environment weighed on Nike’s results. High inflation and shaky consumer confidence meant shoppers cut back on discretionary athletic apparel . In China, sales rebounded more slowly than hoped, with local Chinese brands aggressively capturing market share. Simultaneously, Nike faced intensified competition globally. For sometime there has been a lack of innovative and appealing products in Nike’s recent lineup, as upstart rivals like On (Roger Federer-backed) and Hoka lured consumers with trendier, performance-oriented footwear . In women’s activewear, niche players (Lululemon, Alo Yoga, Athleta, etc.) continued to excel in areas where Nike historically lagged. This convergence of factors eroded Nike’s market share and investor confidence.

Nike also grappled with internal strategy issues. The company entered 2024 carrying excess inventory – a hangover from supply chain disruptions and over-stocked retailers in prior years. Nike had to resort to steep markdowns to clear inventory, compressing margins and hurting brand pricing power. Nike’s heavy pivot to direct-to-consumer in recent years (while initially boosting sales) led to high inventories, necessitating steep discounting, and strained relationships with wholesale partners . This strategy was being re-evaluated as sales slowed . Essentially, Nike lost its obsession with sport by focusing too much on DTC and lifestyle marketing, according to its new leadership  – a misstep now being corrected.

These headwinds prompted an internal shake-up. In late 2024, Nike announced that longtime exec Elliott Hill would return as CEO, replacing John Donahoe, to steer a turnaround  . The move was cheered by analysts as a return to Nike’s roots. Hill vowed to refocus on core sports categories (like basketball and running) and rebuild Nike’s innovation pipeline. This shift implied dialing back on the fashion/streetwear emphasis that had grown under the prior strategy . While investors reacted cautiously – acknowledging that a multi-year process”is needed to restore growth   – the leadership change underscored Nike’s recognition of its fundamental issues.

To reinvigorate growth, Nike in early 2025 unveiled a long-term collaboration with Skims (the popular shapewear/loungewear brand co-founded by Kim Kardashian), creating a new joint sub-label NikeSKIMS  . The venture is aimed squarely at accelerating Nike’s women’s business – an area of huge potential that Nike has yet to fully tap. (Nike’s women’s division has been growing faster than men’s, but still accounts for under half of sales, trailing rivals like Lululemon in female consumer mindshare .) By leveraging Skims’ brand appeal, Nike hopes to attract style-conscious women and close the gap in yoga, athleisure and lifestyle apparel.

However, while the NikeSKIMS partnership offers promise, it also carries significant risks. Such high-profile collaborations must be managed carefully to avoid unintended consequences. One risk is that NikeSKIMS could simply shift demand away from Nike’s current products instead of adding new sales. Nike already offers a wide range of women’s activewear – from sports bras and leggings (e.g. the Nike One and Zenvy leggings) to yoga pants and lounge pieces – and there’s overlap in the target demographic. Fans of Nike’s women’s apparel might opt for NikeSKIMS tights or tops over Nike’s in-line offerings, especially if the co-branded items are seen as more fashionable or exclusive. This potential cannibalization of Nike’s existing women’s line is a key risk of the partnership . For example, a buyer looking for high-waist black leggings might now choose a NikeSKIMS version over Nike’s own Zenvy leggings – resulting in no net new customer for Nike, just a diverted sale.

On the other hand, Nike is clearly betting that the collaboration will expand the overall market of women buying Nike products, not just redistribute the same demand . By fusing Nike’s performance cred with Skims’ body-inclusive styling, the hope is to attract new consumers (e.g. Skims loyalists who weren’t buying Nike before, or casual wearers who become more interested in athletic gear) and to increase purchase occasions for existing customers. If successful, NikeSKIMS could bring incremental revenue by filling a white space – offering women’s athleticwear that is equally focused on function and figure-flattering form. The challenge will be ensuring the new line truly addresses unmet needs (fit, comfort, style) so that it drives growth rather than merely substituting for Nike’s other women’s products.

Another concern is how the NikeSKIMS tie-up might affect Nike’s brand equity and be perceived by its core customers. Nike has built its brand on elite athletic performance, innovation, and authenticity in sport. Skims, in contrast, is a celebrity-driven, fashion-centric brand known for shapewear and pop-culture cachet. There is a fine line for Nike to walk in this collaboration. If the story and marketing around NikeSKIMS emphasize style over sport, Nike risks diluting its performance-oriented image. If the narrative leans too much into aesthetics, it risks being perceived as just another lifestyle brand. In other words, NikeSKIMS must not come off as a pure fashion play with a swoosh slapped on – that could undermine Nike’s differentiation as a technical athletic brand. Longtime Nike loyalists (especially those who value its serious sports heritage) might be turned off if they feel the brand is chasing trends or celebrity hype at the expense of substance.

Nike’s core customer base includes athletes, sneaker enthusiasts, and fitness devotees who expect high performance and may be skeptical of a Hollywood partnership. Some may question whether a Kim Kardashian-associated line aligns with Nike’s ethos. (Nike has done high-fashion collabs and ambassador deals before, but a permanent co-branded line with a non-athlete celebrity is new territory.) How this group responds will depend on execution – if NikeSKIMS products deliver on performance, core customers may embrace them, but if not, Nike could face backlash or apathy. The stakes are high: recent history shows that celebrity sport-fashion collaborations can falter if consumers perceive them as inauthentic. Adidas’s failed Ivy Park venture with Beyoncé is a cautionary example – launched with huge fanfare, it struggled to convert hype into sales, plunging over 50% below projections and prompting an early end to the partnership . Nike will be keen to avoid a similar outcome. The NikeSKIMS branding will need to feel true to Nike’s values (e.g. celebrating sport and fitness, not just celebrity glamour) to win over skeptics and protect the strength of the Nike brand.

Integrating a performance sportswear giant with a fashion-forward shapewear brand is not only a branding exercise – it presents substantial operational and product development challenges. Nike and Skims each bring distinct expertise, and melding them into a coherent product line will test both companies’ capabilities. The success of NikeSKIMS will hinge on delivering products that genuinely merge function with style. This means apparel that provides Nike-grade athletic performance (support, sweat-wicking, durability, technical fits) while embodying Skims’ signature sculpting, comfort, and inclusive sizing. Achieving this dual goal is complex. The product needs tomove seamlessly between performance and everyday wear and offer adaptive support for different body types  – essentially technical shapewear that can handle a workout. Nike’s development teams will have to work closely with Skims’ designers to innovate new materials and cuts that meet both brands’ standards. Maintaining both brands’ quality benchmarks is a non-trivial execution challenge . For example, a NikeSKIMS bodysuit might need to satisfy Nike’s rigorous athletic testing and Skims’ comfort metrics simultaneously. Any shortfall on either side (e.g. if a product looks great but doesn’t perform in the gym, or functions well but doesn’t flatter the customer) could hurt the collaboration’s credibility. Both parties claim to be “obsessed” with innovation and fit, which will be put to the test in R&D and production.

Launching a new co-branded line at scale adds logistical complexity for Nike. The company is rolling out NikeSKIMS in phases – first a U.S. launch (Spring 2025) through its website and select stores, with a broader international and wholesale expansion in 2026  . This phased approach suggests careful attention to supply chain optimization and brand positioning, likely to ensure they can meet demand and maintain product quality . Even so, coordinating manufacturing for a brand-new product range (from leggings to footwear) will require tight alignment. Nike must integrate Skims’ input on design with its own production processes, potentially onboard new materials suppliers (for Skims-style fabrics), and forecast demand in a new segment. Any hiccups – production delays, sizing issues, inventory imbalances – could be magnified given the high-profile nature of the launch. Moreover, NikeSKIMS will eventually span multiple channels (Nike’s DTC, Skims’ online audience, and wholesale partners by 2026), which means Nike’s sales and merchandising teams must ensure consistent brand experience and avoid the distribution conflicts that Nike’s DTC push encountered in the past. Managing this complexity is doable for Nike (which has a vast supply chain), but it adds another layer of execution risk to an already ambitious project.

Bridging Nike’s performance-driven culture with Skims’ fashion-centric approach will also be a balancing act internally. The collaboration’s marketing strategy needs to speak to both audiences – sport performance and style/lifestyle – without confusing the messaging. Nike’s initial campaigns (including a Super Bowl ad featuring women athletes, and the language of “inviting more women into sport” in the NikeSKIMS announcement) indicate that they will lean on empowering, athletic themes. But Skims’ involvement brings a strong pop-culture and social media angle (leveraging Kardashian’s influence). Blending these effectively is an operational challenge for the branding and retail execution teams. The collection must be sold in a way that highlights its technical merits as well as its aesthetic appeal. If marketed overly as a fashion accessory, it could alienate serious athletes; if marketed only as utilitarian sports gear, it might not attract the style-conscious new customers it aims for. Striking that equilibrium will be critical, keeping function at the forefront in storytelling to maintain authenticity, while using Skims’ flair to make the products exciting. Internally, this requires Nike and Skims to be in lockstep on product vision and customer experience, which can be challenging when two different corporate cultures collaborate. Effective communication and shared goals will be key to surmounting these operational hurdles.

Nike’s roughly 25% stock drop in 2024 underscored the company’s need to adapt – addressing slowing sales, fierce competition, and strategic missteps. The partnership with Skims is a bold strategic pivot aimed at solving one piece of the puzzle (energizing the women’s segment) and signals that Nike is willing to break old molds to recapture growth. It brings clear opportunities: Nike can leverage Skims’ $4 billion brand cachet and body-inclusive design prowess to win female consumers it has struggled to win on its own. Indeed, investors initially reacted positively – Nike’s stock jumped ~4% on the announcement, the best single-day gain since the new CEO took over, reflecting optimism about the move.

Nike must ensure the venture doesn’t simply cannibalize existing sales, dilute its brand, or run into operational snags. Success will depend on execution: Can Nike and Skims together create products that authentically fuse performance and style? Can they expand Nike’s reach to new consumers (without alienating loyalists) and do so profitably? NikeSKIMS could become a powerful growth engine, helping Nike reclaim momentum in women’s activewear and countering competitors  . If they stumble, it could serve as an expensive lesson in the challenges of mixing sport and celebrity fashion.

Ultimately, Nike’s broader turnaround will require more than one collaboration – it needs renewed innovation in its core offerings and flawless execution across the board . The NikeSKIMS deal is an attention-grabbing step in that journey. Industry watchers will be following closely to see whether this high-profile partnership can deliver real results, or whether it becomes another case of hype over substance in the ever-evolving sportswear market. Nike’s brand mantra has long been “Just Do It” – but in this case, doing it right is what will determine if the move pays off.