Nike’s revival: A tie-up with Kim Kardashian’s Skims label might just do it
Subscribe to enjoy similar stories. Two years ago, the storied American sportswear company Nike unveiled a new sneaker design in collaboration with jeweller Tiffany & Company. It was a symbol of former CEO John Donahoe’s efforts to turn Nike into a luxury brand, bypassing retailers and selling direct to customers, just like the world’s bling behemoths.
Last week, Nike’s new CEO Elliott Hill announced a partnership with Kim Kardashian’s Skims clothing brand in an effort to reconnect with consumers. The deal had been in the works for over a year, so it likely had its inception under Donahoe, but the fact that Hill has been able to bring it to fruition is promising. The new partnership, along with signs that Nike is starting to challenge Adidas with its retro sneaker offerings, should give investors confidence that Hill is beginning to turn the juggernaut around.
Shares rose as much as 6% on the Skims news, the most since Hill was appointed in September. Nike said it would create a new brand— NikeSkims—with the shapewear label co-founded by Kardashian. This isn’t a one-off collaboration, but a multi-year tie-up, more akin to the sports giant’s arrangement with Michael Jordan than, say, a limited-edition line with a luxury house.
The first products under this deal will arrive in the US shortly, with a global expansion following next year. NikeSkims will include clothing, shoes and accessories. The range will be focused on apparel that enhances the wearer’s performance on the running track or yoga mat, the types of venues where Nike is seeking to regain its prowess.
Read more on livemint.com
