- Nike Inc. (NKE) shares rose 4.27% to $76.53 after announcing a new women’s activewear brand, NikeSKIMS, in partnership with Skims by Kim Kardashian, aiming to capture the growing women’s athleisure market.
- The collaboration focuses on expanding Nike’s offerings in training apparel, footwear, and accessories for women, targeting a segment where competitors like Lululemon (LULU) have seen significant success.
- This move under CEO Elliott Hill‘s strategy emphasizes a return to core sports roots while broadening market appeal, highlighted by Nike’s first Super Bowl ad in years featuring women athletes and signaling potential for future growth in the women’s sector.
Nike Inc. (NKE) shares surged 4.27% to reach an intraday high of $76.53 on Tuesday, following the announcement of a new women’s activewear brand in collaboration with Kim Kardashian’s Skims. This partnership aims to bolster Nike’s position in the competitive women’s athleisure market, capitalizing on the success and inclusivity of Skims, which has been valued at around $4 billion since its inception in 2019. The move is part of CEO Elliott Hill’s strategy to revitalize Nike’s appeal, particularly among female consumers, by returning to core sports offerings while expanding into premium casual wear, a segment where brands like Lululemon (LULU), Alo Yoga, and Vuori have seen significant growth.
NikeSKIMS, as the new brand is called, will feature training apparel, footwear, and accessories designed specifically for women, aiming to capture the market segment that has been driving sales for competitors. The introduction of this line comes at a time when demand for high-end joggers and yoga pants has been strong, evidenced by the success of other brands focusing on women’s activewear. Nike’s decision to partner with Skims is seen as a strategic move to accelerate growth in this area, with Morningstar analyst David Swartz noting that Nike has missed out on potential growth in women’s sportswear, which Lululemon has effectively tapped into over the past decade.
The collaboration also marks a significant shift for Nike, traditionally more focused on men’s products, towards a more balanced gender approach in its offerings. This was highlighted in Nike’s recent Super Bowl advertisement after nearly three decades, spotlighting female athletes like Caitlin Clark and Sha’Carri Richardson, signaling the brand’s commitment to women’s sports and fashion. With NikeSKIMS, the first collection will be available in select U.S. retail locations and online, with plans for broader distribution in 2026. This initiative could potentially be one of Nike’s best days in stock performance since Hill’s appointment, indicating investor confidence in the strategic direction under his leadership.
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