By R.J. Abbott
Nike is at an inflection point.
Once the uncontested leader in sports culture and innovation, the brand now finds itself chasing trends instead of setting them. Instead of reclaiming its cultural dominance, Nike is borrowing relevance from those who still have it. Enter Skims.
This partnership raises fundamental questions:
✔ Does Nike truly need Skims to succeed in women’s sportswear?
✔ What does this signal about Nike’s internal ability to innovate?
✔ Is this a strategic long-term move, or a short-term play to satisfy investors?
Because Nike doesn’t need Skims. And Skims doesn’t need Nike. But Nike needs a win—a short-term boost to offset deeper structural challenges.
This isn’t speculation. Nike’s stock has fallen over 50% from its 2021 peak, shrinking its market cap by over $90B. Revenue growth has stagnated, and the once-mighty innovation pipeline appears weak. Consumers have taken notice. Nike’s share of the U.S. sneaker market dropped from 35.1% in 2021 to 29.9% in 2023, while brands like On Running and Hoka continue to gain traction.
So what does Nike do? It reverts back to collabs—again.
Malcolm Gladwell, in David and Goliath, said:
“Why do giants lose? Because they can’t see. When they become big and powerful, they lose the ability to appreciate the world around them.”
Nike, the former underdog, became the Goliath. And like all giants who lose their footing, it now risks blindly chasing relevance rather than shaping it.
The $5B Band-Aid
Let’s be clear, this is an exceptional move for Kim Kardashian and Skims.
✔ A Nike partnership expands Skims beyond shapewear, adding legitimacy in activewear.
✔ Skims’ estimated $5B valuation limits its exit strategy.
✔ If not Nike, its options are private equity or IPO. But an IPO? Highly unlikely in its current form.
For Nike, however, this move exposes deeper issues.
Nike has long tried to position itself as the global leader in women’s sportswear, performance, and innovation. But instead of accelerating that through its own brand DNA, it’s outsourcing that mission to Skims.
If Nike truly wanted to dominate the women’s space, why not focus on athletic innovation?
Where is the investment in new performance-driven women’s product?
More importantly: Why does Caitlin Clark, arguably the biggest name in women’s sports right now, still not have a signature shoe?
Nike signed Michael Jordan in 1984, and he had his first shoe on his feet within six months.
Now, a once-in-a-generation female athlete only gets a small cameo in a Super Bowl ad, while Kim Kardashian gets a co-branded partnership. The contrast is striking.
Nike Needs to Think Like David Again
Nike’s biggest problem isn’t sales, it’s identity.
✔ Nike was built on world-class innovation.
✔ Nike was built on athlete-led storytelling.
✔ Nike was built on defining culture, not renting it.
But over the last decade, Nike has prioritized short-term brand partnerships over long-term brand-building. The shift has been gradual, but measurable:
🔻 From 2018 to 2023, Nike reduced wholesale distribution by 50% in favor of DTC. While this initially drove margin expansion, it weakened cultural accessibility and gave room for competitors like New Balance and On Running to gain market share.
🔻 Nike’s apparel revenue dropped 7% in North America last quarter, signaling struggles in a space Skims now conveniently fills.
🔻 Nike’s reliance on retro silhouettes like the Dunk and Jordan 1, rather than pushing new performance-driven designs suggests innovation has taken a backseat to nostalgia.
Nike doesn’t need more collabs.
Nike doesn’t need more distractions.
Nike, like someone in therapy, needs to focus on itself.
The once-invincible Goliath needs to reinvent itself with a David mentality.
🔥 Stop collabing its way into culture.
🔥 Start rebuilding its own.
🔥 Bring back best-in-class world-building.
🔥 Stop marketing, start building a belief system.
🔥 Stop chasing relevance, start leading again.
Nike doesn’t need another celebrity partnership.
Nike needs to become a CULT again.
The greatest brands don’t chase culture—they create it.
Nike has done it before. The question is: Will they do it again?
