Nike (NKE) is banking on Kim Kardashian’s Skims brand to help revive its image and re-engage female consumers, but analysts warn the financial benefits may be limited in the short run.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The new NikeSKIMS line of activewear and underwear launched Friday with seven collections, a splashy marketing campaign featuring more than 50 athletes, and product drops on Nike’s and Skims’ websites. Shares of Nike edged up 0.4% in pre-market trading to $69.49 ahead of the launch, though the stock remains down 8.5% this year and more than 60% off its all-time high from 2021.
Analysts Weigh Cultural Boost against Slow Financial Impact
The Skims name brings cultural cachet and younger consumers, but analysts said Nike will need more than one collaboration to fix years of lost market share.
“Initially, the product likely is not going to be a big financial benefit for Nike given quantities will likely be limited online and the product will only physically be in select stores,” said Cristina Fernández of Telsey Advisory Group. She noted that NikeSKIMS could expand globally over time through wholesale partners, but the road to meaningful sales growth will take patience. Fernández has a Market Perform rating on Nike stock and recently raised her price target to $75 from $70.
Jefferies analyst Randal Konik sees the collaboration as part of CEO Elliott Hill’s broader “Win Now” turnaround strategy. “Hill is prioritizing ubiquity, expanding Nike’s global reach through strategic partnerships and retail expansion,” he wrote earlier this week. Jefferies holds a Buy rating on Nike stock with a $115 target.
Nike Is Fighting for Female Consumers
Nike has been losing ground in the women’s sportswear segment to rivals such as Lululemon (LULU), and analysts see the Skims tie-up as a chance to reconnect with that audience. Skims, co-founded by Kim Kardashian and Emma Grede in 2019, has quickly become a powerhouse in women’s apparel and was valued at $4 billion in its last funding round.
But Fernández cautioned that Nike “still seems a few quarters away from reaching stabilization,” with profit headwinds and declining sales expected in the near term. The consensus on TipRanks shows first-quarter revenue of $11 billion, down 5.5% year-over-year, with another drop forecast in the November quarter before growth returns.
Key Investor Takeaway
For Nike investors, the Skims collaboration is less about immediate numbers and more about whether the brand can regain cultural relevance with women. Analysts say the launch is an important symbolic step, but real progress will depend on how well Nike delivers through new partnerships, new products, and wider retail reach.
Is Nike a Good Stock Buy Now?
Nike currently holds a Moderate Buy rating based on 27 Wall Street analysts over the past three months. Out of those, 17 recommend a Buy, 10 say to Hold, and none suggest a Sell.
The average 12-month price target for Nike is $81.38, representing a potential 17.53% upside from its latest price.
