Nike is in a Slump: Hires Kim Kardashian to Help

Nike is looking to revive its struggling sales with a major celebrity partnership, announcing a collaboration with Kim Kardashian to create a new brand called “NikeSkims.”

The sportswear giant revealed the initiative on Tuesday, describing it as a game-changing move aimed at reshaping the fitness and activewear industry. Inspired by Kardashian’s successful Skims shapewear line, NikeSkims promises “best-in-class innovation in service of all women athletes,” according to a joint press release.

While specific details, including pricing and product images, remain under wraps, the collection is set to debut online and in select U.S. stores this spring, with a global rollout planned for 2026. This marks a first for Nike, which has traditionally relied on acquisitions or athlete partnerships – such as its long-standing collaboration with Michael Jordan – rather than co-creating an entirely new brand with an external company.

Nike noted that Skims originally pitched a shared product line, but the discussions evolved into a more extensive partnership. “More than a partnership, the new brand will set a new standard in the global fitness and activewear industry,” the company stated.

Industry experts believe the move could help Nike regain its footing in the increasingly competitive activewear market, where it faces stiff competition from brands like Lululemon and Alo. Retail analyst Neil Saunders suggested that Nike has struggled to captivate female consumers in recent years. “Nike should have all the tools to lead in womenswear, but it has lost some of its storytelling, innovation, and ability to excite customers,” Saunders told CNN. “Partnering with Skims helps address those weaknesses.”

Kardashian’s Skims brand has been a major success, reaching a $4 billion valuation as of July 2023. Originally focused on shapewear, the brand has since expanded into menswear and secured sponsorship deals with the NBA, WNBA, and Team USA for the Paris Olympics.

Nike, meanwhile, is navigating a challenging retail landscape. The company has faced increased competition from emerging running brands like Hoka and On, while shifting consumer habits have led to weaker demand for premium sneakers and apparel. In an effort to turn things around, Nike recently appointed a new CEO.

The brand reported an 8% drop in sales in its most recent quarter, highlighting its ongoing struggles. However, news of the Kardashian partnership provided a boost, with Nike shares rising nearly 3% in early trading, while Lululemon shares fell by a similar percentage.