Listen to the article
The launch of NikeSkims, the new venture between Nike and Kim Kardashian’s Skims brands, has been pushed back due to production delays between the two teams, a company spokesperson said this week.
The first collection from the brand was expected to hit stores this spring, and will still be released before the end of the year, but the two teams are working to ensure the product is right. NikeSkims was announced in February this year and is set to feature apparel, footwear and accessories.
The brand represents a larger bid for the women’s market on Nike’s part and is intended to be a mix of performance and style. At the time NikeSkims was announced, the two companies said they would make training products “crafted to fit the body’s every curve, enhancing its natural form.” A company spokesperson said there is a lot of consumer interest in the launch, but the teams want to ensure they get the product right and drop it at the right time.
NikeSkims will launch in the midst of a broader turnaround strategy under new CEO Elliott Hill, who joined the company in October and has since gone to work on a number of priorities at the activewear giant. Among them, Hill is focused on rebuilding relationships with wholesale partners, which fell by the wayside as Nike pursued a DTC-first strategy in recent years, and on rightsizing franchises like Dunk and Air Jordan.
When it comes to those classic franchises, BMO Capital Markets’ Simeon Siegel said in an analyst note Friday that promotions for Air Force 1 improved in May, though they worsened for Dunk products. Price increases on other products, which went into effect earlier this month and ranged from $2 to $10, “have yet to materially impact demand for models we track,” Siegel said.
Revenue fell 9% in Nike’s most recent quarter and though the sportswear giant is set to report Q4 next week, Needham analyst Tom Nikic warned that “near-term trends remain challenging” for the retailer.
“[Nike] still faces headwinds from rationalizing over-supplied product franchises (Jordan, Dunk), brand heat still appears to be lukewarm, and they now have tariffs to contend with as well,” Needham said in a note earlier this week.
Although a turnaround will take time to take shape, Hill is now done building out his leadership squad, a company spokesperson told Retail Dive earlier this month. That process has included more than 10 notable title changes, retirements and additions to Nike’s leadership ranks over the past few months, including four 26-plus-year veterans who have retired. The company also laid off a “limited number” of tech employees in May as it shifted responsibility for some systems, applications and products work.