Nike has faced significant challenges over the past year, with its sales dropping sharply and its stock losing substantial value. In 2024, Nike's shares plummeted by 29%, followed by an additional 3.5% decline in early 2025. To combat this downward trend, the company’s new CEO, Elliot Hill, has taken bold steps to rejuvenate the brand, including an unprecedented collaboration with a major cultural icon: Kim Kardashian. Together, they have launched a new joint collection named "NikeSkims," blending Nike’s name with Kardashian’s highly successful shapewear brand, Skims.
The newly announced collection promises to "revolutionize the global fitness and sportswear industry with cutting-edge innovation tailored for all female athletes." While specific details about the collection, such as pricing and imagery, have not yet been disclosed, the launch is scheduled for this spring in the United States, with plans for a global rollout in 2026.
A new direction for Nike
This collaboration represents a historic shift for Nike, which has traditionally refrained from partnering with external companies to create new brands. Instead, the sportswear giant has relied on strategic acquisitions or signing endorsement deals with globally renowned athletes, such as Michael Jordan.
The decision to collaborate with Kardashian reflects Nike's strategy to regain a competitive edge in the sportswear market, where it has recently struggled. According to Neil Saunders, a retail analyst and managing director at GlobalData Retail, "Nike has weakened in the apparel category and now plays a secondary role to rivals like Lululemon and Alo." By teaming up with Kardashian, Nike hopes to reclaim its relevance and attract a broader audience.
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For Kardashian, this partnership builds on her already remarkable success with Skims. In July 2023, Skims was valued at an impressive $4 billion. Since then, the brand has expanded its offerings to include a men’s line and secured high-profile sponsorships with the NBA, WNBA and the U.S. Olympic team for the Paris Games.
Despite Nike's struggles, some investors remain optimistic about the company’s future. Billionaire Bill Ackman, through his hedge fund Pershing Square, has significantly increased his stake in Nike. In the fourth quarter of 2024, Ackman acquired an additional 2.44 million shares, following his earlier purchase of 13.2 million shares in the third quarter. By the end of December, Pershing Square held a total of 18.8 million Nike shares.
The announcement of the partnership with Kardashian, coupled with the increased investment by Ackman’s hedge fund, appears to have had an immediate positive impact on Nike's stock. On Tuesday, the company’s stock rebounded, rising 6.2% on Wall Street.
With this bold collaboration and renewed investor confidence, Nike is taking significant steps to reverse its fortunes and reclaim its position as a leader in the sportswear industry.