Nike’s 2024 Was a Train Wreck… So They Called Kim Kardashian for Help

Nike had a pathetic 2024, to say the least. The swoosh went from being the undisputed king of sportswear and shoes to desperately trying to offload mountains of unsold inventory after its direct-to-consumer strategy completely backfired. But now, Nike’s got a new game plan, and it involves one of the most famous people on the planet… Kim Kardashian.

Yes, the reality TV star, billionaire entrepreneur, supposed law student, and somehow still trending cultural icon is now in business with Nike. The two are launching NikeSKIMS, an athleisure line aimed at competing with Lululemon, Alo Yoga, and every other brand currently selling overpriced leggings to the masses. In response, Nike’s stock jumped 4% immediately.

For years, Nike dominated the sportswear game. But then former CEO John Donahoe got a little too ambitious and decided that abandoning retailers in favor of direct-to-consumer sales was the future. Instead of future-proofing the brand, all it did was leave Nike drowning in unsold sneakers while retailers like Foot Locker quietly moved on to other brands. Now, with new leadership in place, Nike is rushing to fix its mess. And after their pro-women-sports Super Bowl ad scored major brownie points, the timing couldn’t be better to reposition itself in the women’s activewear market… one they’ve been spectacularly late to embrace.

(Source: Nike)

For years, Nike focused on men’s performance gear while Lululemon turned $120 yoga pants into a billion-dollar empire. Morningstar analyst David Swartz has been calling it for years, pointing out that the women’s business is growing faster and has way more long-term potential. Nike is finally waking up to that fact, and apparently, their hope and a prayer involves putting their faith in Kim Kardashian.

If there’s one thing she knows how to do, it’s sell things people don’t actually need but will buy anyway. Skims, her shapewear brand, is valued at $4 billion, and its loungewear, bodysuits, and compression gear are no exception. Nike is banking on that magic. The NikeSKIMS line will include training apparel, footwear, and accessories, with an emphasis on “body inclusivity.” And if Skims' $4 billion valuation has proven anything, it’s that telling women they’re supermodel-tier material (as long as they buy your yoga pants) is a billion-dollar business strategy.

(Source: Glossy)

While the partnership might feel like a gimmick, some big-money investors think Nike is an amazing dip buy right now. Hedge fund billionaire Bill Ackman has been steadily accumulating Nike stock after its brutal 29% drop in 2024. And by accumulating, we mean he’s put over $1 billion into the company… not exactly the kind of move you make if you think a brand is doomed. Ackman, who previously made a fortune from Chipotle’s recovery (which went pretty well), is now convinced Nike is gearing up for a major comeback.

With the Kim K deal, a renewed focus on women’s activewear, and a new CEO at the helm, Nike is doing everything it can to course-correct. But the real question is whether this partnership actually fixes anything. If you feel nervous about buying a single share of Nike, just remember that Bill Ackman has over $1 billion on the line.

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Stock.News does not have positions in companies mentioned.