Nike Sees Stock Bump After Kim Kardashian Skims Deal Announced

Nike’s announcement on Tuesday of a partnership with Kim Kardashian’s shapewear brand SKIMS led to a notable increase in its stock price.

The athletic apparel giant unveiled the new “NikeSKIMS” line as a strategic move to rejuvenate its presence in the women’s activewear market.

Why It Matters

Nike has struggled recently with declining sales and shifting consumer preferences. “NikeSKIMS,” its collaboration with Kardashian’s $4 billion-valued SKIMS brand aligns with Nike’s broader efforts to revitalize its women’s business and compete against brands like Lululemon and Alo.

What To Know

Nike told Newsweek the partnership has been in the works for over a year, and the line will feature training apparel, footwear and accessories designed for women athletes.

According to Nike’s press release, the collection “will disrupt the global fitness and activewear industry with best-in-class innovation in service of all women athletes.”

Nike has historically relied on its in-house branding and product innovation to capture market share. The partnership with SKIMS represents a shift toward leveraging celebrity influence to expand its appeal. The collection will debut in the U.S. this spring, with a global expansion planned for next year.

Financial markets responded positively to the announcement. Nike’s stock (NKE) climbed 4 percent following the news, making it one of the leading gainers on the Dow Jones index on Tuesday.

The stock bump comes as Nike’s stock has declined by more than 25 percent over the past year due to sluggish sales growth and changing consumer spending habits. Despite the short-term boost from the partnership announcement, analysts remain cautious about whether this collaboration will provide sustained long-term gains.

What People Are Saying

Kim Kardashian, co-founder and chief creative officer of SKIMS, said in Nike’s press release: “This partnership is the culmination of a shared vision, delivering product that is meticulously designed to sculpt and perform for every body. Every single detail has been obsessed over and carefully considered.”

Heidi O’Neill, president of consumer, product and brand, NIKE, Inc., said in Nike’s press release: “We’re energized by the opportunity to build a new brand and shake things up for the next generation of athletes with NikeSKIMS.”

Neil Saunders, retail analyst at GlobalData Retail, told CNN: “In theory, Nike should have all the skills needed to drive its own brand in womenswear, but the reality is it has lost some of its ability to story tell, innovate and wow consumers. Partnering with SKIMS remedies some of those weaknesses.”

What Happens Next

NikeSKIMS is set to launch in the U.S. in the coming months, with international expansion expected by 2026. Investors and analysts will be watching closely to see if the collaboration translates into sustained stock gains and stronger sales in Nike’s women’s business.