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Can SKIMS Save Nike?
Bruce Hamilton
February 25, 2025
Nike’s dominance isn’t what it used to be. With sales slipping and competition heating up, the brand is looking for a cultural shakeup—and a partnership with Kim Kardashian’s shapewear brand SKIMS might be the answer. But can the queen of shapewear actually help revive the Swoosh? Or is this just another hype play?
In this issue, we break down the numbers, strategy, and potential impact of a Nike x Kim Kardashian collab. Let’s get into it.
This week in pop culture & business
Paramount strikes deal with Domain Capital Group to co-finance 30 films
Paramount Pictures has secured a 30-picture financing deal with Domain Capital Group, aiming to bolster its film production capabilities. This agreement comes on the heels of Paramount’s recent merger with Skydance Media, reflecting the studio’s strategic efforts to enhance its content offerings and financial stability in a competitive entertainment landscape.
Pokémon Go maker, Niantic, is selling its games division
Niantic Inc., the developer behind the popular augmented reality game Pokémon Go, is reportedly in discussions to sell its gaming division to Scopely Inc., a company owned by Saudi Arabia, for approximately $3.5 billion. This move comes as Niantic shifts its focus away from gaming, following challenges such as layoffs and project cancellations in recent years. The sale would mark a significant change in ownership for Pokémon Go, which has been a major success since its launch in 2016.
Amazon takes creative control over James Bond franchise.
Amazon MGM Studios has entered a joint venture with longtime James Bond producers Michael G. Wilson and Barbara Broccoli, granting Amazon creative control over the iconic 007 franchise. This move follows Amazon’s $8.45 billion acquisition of MGM in 2022. Wilson and Broccoli will remain co-owners but are stepping back from their oversight roles, with Wilson retiring to focus on art and charitable projects. The financial terms of the new venture have not been disclosed but Amazon is rumored to spend $1B to secure creative rights to the long running franchise.
AI wearable startup, Humane, is acquired by HP for $116M
Following HP’s acquisition of Humane’s assets for $116 million, the transition has led to significant changes for Humane’s approximately 200 employees. According to internal documents and sources, several employees received job offers from HP with substantial pay increases ranging from 30% to 70%, along with HP stock and bonus plans. However, not all employees were retained; some were immediately laid off as part of the restructuring process. This acquisition marks the end of Humane’s AI Pin product, with HP integrating Humane’s team and technology into a new division called HP IQ, focused on AI innovation across HP’s product lines.
Can SKIMS Save Nike?
In recent years, Nike has faced notable financial challenges, prompting strategic shifts to regain its market dominance. A significant move in this direction is Nike’s partnership with Kim Kardashian to launch the “NikeSKIMS” line. This collaboration aims to blend Nike’s athletic heritage with Kardashian’s influence in the fashion and shapewear industry.
Nike’s Financial Landscape
In fiscal year 2024, Nike reported revenues of $51.4 billion, a modest increase from $51.2 billion the previous year. However, the fourth quarter saw a 2% decline in revenues to $12.6 billion, with Nike Direct revenues dropping by 8% to $5.1 billion. Digital sales also faced challenges, decreasing by 10% in Q4, following a 4% decline in Q3. These figures highlight the hurdles Nike has encountered in maintaining its growth trajectory.
The Strategic Partnership with Kim Kardashian
To address these challenges, Nike has collaborated with Kim Kardashian to introduce “NikeSKIMS,” a line that merges performance wear with contemporary fashion aesthetics. Announced in February 2025, this partnership aims to attract a younger, fashion-forward demographic. The announcement led to a 3% uptick in Nike’s share price, indicating positive market reception.
Kim Kardashian’s Market Influence
Kim Kardashian’s entrepreneurial ventures have demonstrated significant market impact. Her shapewear brand, SKIMS, launched in 2019, has achieved an estimated valuation of $4 billion. The brand’s success is attributed to its inclusive sizing, diverse product range, and strategic use of social media and influencer marketing. Over the past year, SKIMS has been mentioned by 7,800 creators in 29,400 posts on Instagram, achieving an engagement rate of 3.3% and reaching a potential audience of 4.8 billion.
Potential Impact on Nike
The “NikeSKIMS” collaboration is poised to rejuvenate Nike’s brand image and financial performance by:
• Expanding Market Reach: Leveraging Kardashian’s global influence to attract a broader, fashion-conscious audience.
• Enhancing Product Diversity: Introducing innovative products that blend athletic functionality with modern style.
• Boosting Digital Engagement: Utilizing Kardashian’s social media prowess to drive online sales and brand interaction.
While this partnership presents promising opportunities, its long-term success will depend on authentic brand integration and sustained consumer interest.
Curated Vibes
Song of the week: “NOKIA” by Drake & PARTYNEXTDOOR
Apple Music
Spotify
Movie of the week: Companion
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