Jogging is not what made Kim Kardashian famous. No matter. The star of reality-TV promo vehicle Keeping up with the Kardashians has scored a major partnership for her Skims underwear and “athleisure” brand, teaming up with running-shoe supremo Nike to create new brand NikeSkims.
It is a curious move. Nike’s ambassadors have been modern gladiators such as Michael Jordan, Tiger Woods and Roger Federer. But Skims has quickly become a formidable business. Five years into existence, it makes more than US$1 billion (S$1.33 billion) in annual revenue. And women’s sport is a growth area for all consumer companies. Like a runner trailing behind in a race, new-ish chief executive Elliott Hill needs to dig deep to catch up with the pack.
Last summer, Nike published fiscal year-end results and forecasts that were so poor they cost it a fifth of its market capitalisation. In the two quarters since, the group’s total revenue has declined by a tenth compared with the previous year. Its market cap remains over US$100 billion, but its share price has fallen by more than half its 2021 peak.
What has gone wrong? Under John Donahue, the management consultant and tech executive who was Nike CEO between 2020 and 2024, the company had tried to emphasise direct-to-consumer sales over those at retail partners. It also lacks a “killer app” shoe — the kind that dominates the zeitgeist.
In streetwear, trends come courtesy of influencers and social media, rather than the television advertisements that made Nike iconic. Kardashian, whose 300 million or more social media followers have powered a billion dollar fortune, fits the bill. The commercial terms offered to the reality star have yet to be disclosed, but Nike could send Kardashian’s business into a new league as perhaps the most credible challenger to Lululemon.
