Despite its Olympics and 2025 Super Bowl ad offensive, Nike’s most recent financial results show there’s still a hill to climb to reclaim its brand swagger. The Portland-founded company reported an 8% revenue dip in its most recent quarter, while direct-to-consumer sales dropped 13% to $4.7 billion.
There are several reasons for Nike’s ongoing sales slump, from consumers tightening their purse strings to a perceived lack of product innovation. However, a big one is increasingly tough competition from upstart running brands like Hoka and On.
These newcomers have tapped into a shifting consumer preference for more specialized and innovative athletic wear. They’ve also inked buzzy partnerships with celebrities, including Zendaya.
For Christena Garduno, CEO of performance agency Media Culture, Nike’s creative output in this new landscape has felt stagnant and lacks the bold, game-changing designs that once set the brand apart.
She told ADWEEK Nike needs to rethink its approach to stay relevant and ahead of the competition, which is why the Skims collab is a “brilliant move” that could be bolstered by Kardashian’s drive for “innovation.”
“From pioneering products like nipple bras and butt-enhancing shapewear to her collaborations with North Face for ski wear and Dolce & Gabbana, Kim has never shied away from pushing boundaries,” she said.
She added strategic partnerships with celebrities including Tate McRae and Charli XCX have solidified Kardashian’s ability to command attention.
“As Nike works to re-establish itself as an innovator in the market, this partnership is a smart, forward-thinking move that will undoubtedly capture attention and bring new energy to Nike’s campaigns,” she added.