Nike (NKE.N) will launch a new women’s activewear brand in the U.S. this spring in partnership with Kim Kardashian-owned shapewear label Skims, as CEO Elliott Hill works to broaden its offerings to better compete with upstart brands.
The tie-up is expected to give Nike a leg up in women-centric athleisure brands as it stakes its turnaround on a return to its core sports roots. It currently relies on its men-focused business for more than half of its sales.
The push was evident in Nike’s first Super Bowl ad in nearly three decades, featuring star women athletes including Caitlin Clark and Sha’Carri Richardson.
“The women’s business has faster growth and it has more potential growth in the future. Nike missed out on that opportunity that Lululemon (LULU.O), exploited over the last 10-15 years,” Morningstar analyst David Swartz said.
“The Skims partnership is an effort to grow a little bit faster in that area.”
Nike shares rose 4% on Tuesday and were on track for their best day since Hill’s appointment in September last year.
Demand for women’s high-end joggers and yoga pants has been a growth driver for Canada-based Lululemon, as well as for upstarts such as Alo Yoga and Vuori. It has also helped Gap’s (GAP.N), brand Athleta turn a corner.
Nike said the new brand, called NikeSKIMS, would include training apparel, footwear and accessories for women.
Skims was launched in 2019 and is valued at around $4 billion. It has seen strong demand for its premium bras, loungewear and shapewear.
