Sportswear juggernaut Nike is in a slump. The solution? Kim Kardashian

Nike is currently facing a downturn in performance. Sales are declining, and its stock value has shrunk by more than a quarter in the past year. The new CEO needs external assistance to reverse the decline of this established sports company. Kim Kardashian's involvement may bring a new turning point.

Nike is partnering with Kardashian to launch a brand new label called "NikeSkims." The two parties jointly announced the news this month. According to a press release, the line builds upon Kardashian’s popular shapewear brand and “will disrupt the global fitness and athletic apparel industry by serving all women athletes through best-in-class innovation.”

Initially released details are limited, including pricing and product images. But it is reported that the brand will first launch online in the United States and in "select retail stores" in the coming weeks, with plans to launch globally later this year.

This collaboration is a first for Nike. In the past, Nike typically launched apparel through acquisitions or collaborations with well-known athletes such as Michael Jordan, but has never partnered with another company to create a new brand. The specific financial terms of the brand have not been disclosed. Nike stated that Skims initially "proposed a shared product line," but then suggested "doing something bolder," which led to the creation of NikeSkims.

The press release stated, "The new brand is more than just a collaboration; it will set a new standard in the global fitness and athletic apparel industry, launching a wide range of training apparel, footwear, and accessories." Neil Saunders, a retail analyst and Managing Director at GlobalData Retail, stated that the new brand will help improve Nike's competitiveness in the athletic apparel sector, thereby countering brands such as Lululemon and Alo, where Nike has "been mediocre and a secondary player."

Saunders told CNN, "In theory, Nike should have all the skills needed to drive its own women's apparel brand, but the reality is that it has lost some of its ability to tell stories, innovate, and wow consumers. Partnering with Skims can make up for some of these shortcomings."

Skims has been a huge success for Kardashian. As of July 2023, the privately held company was valued at a staggering $4 billion. The brand targets everyday wear and has expanded into men's lines, and has signed sponsorship deals with the NBA, WNBA, and Team USA to participate in last year's Paris Olympics.

Meanwhile, Nike is facing fierce competition from emerging running brands such as Hoka and On. In addition, consumer behavior is also changing, as they are no longer casually purchasing expensive sneakers and sportswear, but are instead opting for basic items and experiences, such as concerts and travel. Nike recently replaced its CEO to help the company turn things around.

Nike's sales in the most recent quarter fell by 8%, indicating that the company is still struggling. However, its stock price rebounded last week after the news of the Kardashian collaboration was announced.