When Elliot Hill took the role of Nike CEO last year, he vowed to devise a winning game plan for the brand. No one really guessed that Kim Kardashian would be part of that strategy. On February 18, Nike floated a sub-brand, called NikeSkims – a collaboration between one of the world’s most famous apparel brands and one of the most famous Internet personalities of the globe.
Co-founded by Kardashian and Jens Grede in 2019, Skims has emerged as the top market player in the activewear industry. The first range of products will hit the market in Spring 2025, with a retail rollout planned for early 2026. Currently, the two brands are focused on apparel – more specifically on athletic wear for women. But Skims doesn’t rule out the possibility of venturing into the men’s apparel market in the future as well.
Not the first time Nike has partnered with another brand, but this one is bolder, bigger, and dare we say, louder.
In 2006, the Oregon HQ brand first teamed up with Apple for the Nike+iPod sport kit that allowed runners to track their progress using a sensor in their sneakers. It revolutionized the fitness technology industry. Then there is the iconic partnership with CLOT, the famous streetwear brand from Hong Kong. Nike first launched the Air Max 1 ‘Kiss of Death’ edition, which was inspired by East Asian acupuncture and acupressure techniques. It was Nike’s first foray into the streetwear industry.
Similarly, with the collaboration with Skims, Nike is aiming to break into the growing industry of female activewear brands. With its stocks falling and sales dropping, it’s not a surprise that Nike is trying to establish its footprint in new markets. However, the women’s activewear industry has power players like Alo and Lululemon. To stay ahead of the competition, Nike has partnered with Kim Kardashian’s Skims.
Nike is partnering with SKIMS, making it crystal clear it aims to be a player in premium women’s activewear.
To compete with women's activewear giants like Lululemon and Alo, Nike is turning to powerhouse celebrity Kim Kardashian and her colossal social media following.
— Front Office Sports (@FOS) February 19, 2025
Back in the 80s, Michael Jordan helped establish Nike as the brand for hoopers. In the 90s, Tiger Woods did the same for Golf. Now, the Beaverton HQ brand is betting on Kim Kardashian to pull off a similar feat in the women’s activewear brand.
In fact, Heidi O’Neil, president of Consumer, Product, and Brand at Nike, has compared Kardashian’s business acumen & influence with Jordan’s. “It’s this great clash of performance product — athlete tested, athlete inspired — with Skims’ incredible attention to the female form of the body and inclusivity,” O’Neil was quoted as saying by DT Next. Skims has also been the official underwear partner of the WNBA, along with the NBA and USA Basketball since 2023 (Angel Reese is a fan). And the history of the brand indicates a win for Nike.
- The company witnessed double-digit growth in the last two years in its women’s sports business.
- Notably, Skims reached a $4 billion valuation in 2023, after raising $270M in the Series C funding round.
- Last year, the brand collaborated with North Face for skiwear generating $5.4M in median impact value.
Skims already has a men’s apparel collection as well. NFL star Nick Bosa, NBA pro Shai Gilgeous-Alexander, and Soccer icon Neymar Jr. are already on the roster of the brand. Then, of course, Kim Kardashian is nothing short of a brand in herself. On top of it, the activewear industry is growing at a rapid pace. Nike is trying to leverage both Kardashian’s appeal and a burgeoning industry for a future-proof business strategy.
How Kim Kardashian can help unlock a new market for Nike
Kardashian has 358M official Instagram followers, more than Nike (305M) and Skims (6.6M) combined. She continues to promote the brand through her personal handle as well. Barely moments after the announcement, Nike’s index went up almost 3% to $75/share, eventually shooting up 6% by afternoon. Proving who is the needlemover here.
Nike $NKE is up close to 3% and over $75/share after announcing a new brand in collaboration with Kim Kardashian’s SKIMS…
NikeSKIMS. I personally like this partnership for both brands and Nike continues to be the most dominant brand in the world.
Positive business development… pic.twitter.com/fLtXigt5pj
— Dividend Dude (@DividendDude_X) February 18, 2025
Moreover, thanks to a renewed focus on health and wellness, women’s fitness wear is a growing industry tapped for hypergrowth in this decade. Fueled by interest in women’s sports, women’s activewear sales are expected to reach $95.32B by 2031, according to an estimate by Verified Market Research. Per the same report, the market is expected to grow at a CAGR of 21% between 2024 and 2031.
On the other hand, the wellness & fitness product market in the USA is expected to grow at a CAGR of 6.1% from 2024 to 2030, according to an analysis done by Grand View Research. In 2023, the projected size of the industry was 28.46B. In light of that, Hill’s decision to partner with Kardashian’s brand serves two purposes.
One, Nike will inevitably be able to reach out to Kardashian’s increasing fanbase. Two, it will serve as the entrance to women’s sportswear. “While Nike has an opportunity to leverage Skims’s brand equity and cult following, the move also allows Skims to enter the realm of sport in a more serious way,” Krista Corrigan, retail analyst at EDITED, told Vulture. So, it can definitely be a home run for both Nike and Skims. If early signs are any indication, it’s only a matter of time.
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