Nike shares rise after announcement of Skims partnership

Business

Nike flagship store. Credits: Nike.

Since the announcement of NikeSkims, a new sportswear brand aimed at women, Nike (NYSE: NKE) has seen a significant increase in its stock price. Analysts report that the American stock market has responded positively to the collaboration between the sportswear giant and Kim Kardashian's shapewear brand, Skims.

Following the announcement, Nike shares rose 6.2 percent, making the company the biggest gainer on the Dow Jones Industrial Average, Sports Business Journal reported. NikeSkims will launch in the US this spring and will feature sportswear, footwear and accessories, the press release said. A global expansion is planned for 2026.

Notably, this is the first time Nike has partnered with an outside company to launch an entirely new brand.

Nike hopes for a turning point after disappointing results

The partnership comes at a critical time for Nike, which has been struggling with increasing competition and disappointing financial results in recent quarters. Nike, Inc. reported revenue of 11.6 billion dollars in the first quarter of its fiscal 2025 fiscal year, down 10 percent from the previous year. Net income fell 28 percent to 1.1 billion dollars. In an effort to turn the tide, the company brought back Elliot Hill as CEO in September 2024 .

High expectations for NikeSkims

The partnership with Skims aims to revitalise Nike and reach a broader audience. Heidi O'Neill, president of consumer, product and brand at Nike, spoke confidently about the new brand with Skims.

O'Neill added: "We are incredibly excited to build a new brand together with Skims and bring something new to the next generation of athletes. This partnership brings together the best of both brands and presents a unique opportunity to transform the industry with our shared passion for innovation."

This article originally appeared on FashionUnited.NL. It was translated to English using AI.

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