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How the NIKE-SKIMS Partnership Could Spark NKE's Next Growth Wave?

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Key Takeaways

  • NIKE partners with SKIMS to blend sport performance with pop-culture influence.
  • The 58-piece debut line merges NIKE's innovation with SKIMS' fit and aesthetic.
  • The alliance targets growth in women's wear and the premium athleisure market.

NIKE Inc.’s (NKE - Free Report) collaboration with SKIMS marks one of its most intriguing moves in recent years, a partnership that blends sport performance with pop-culture appeal. As NIKE works to revive growth and modernize its brand under the “Sport Offense” strategy, teaming up with SKIMS — a brand known for inclusivity, body positivity and sleek design — represents more than just a fashion statement. It’s a deliberate effort to bridge the gap between athletic performance and everyday style, targeting a broader and more diverse consumer base, especially women who value both function and form in activewear.

NikeSKIMS exists to serve women who are redefining what it means to be an athlete today. Within this vision, the partnership debuts its first apparel collection on Sept. 26, designed to sculpt and engineered to perform without compromise. The debut collection, featuring 58 silhouettes, merges NIKE’s performance expertise with SKIMS’ signature aesthetic. Early consumer response has been strong, signaling that this collaboration could help NIKE connect more deeply with a demographic that views activewear as a lifestyle, not just a sport utility. By infusing fashion-forward design into performance wear, NIKE is not only refreshing its women’s segment but also reclaiming cultural relevance.

The SKIMS partnership could serve as a catalyst for growth if NKE successfully scales the concept. It opens new avenues for product diversification, expands NIKE’s reach into the premium athleisure space, and enhances its appeal among younger, style-conscious consumers. If executed well, this collaboration could transcend a simple “fashion flex,” redefining NKE’s women’s business and strengthening its position as a leader in both sport and culture.

NKE’s Competition in the Global Arena

adidas AG (ADDYY - Free Report) and lululemon athletica inc. (LULU - Free Report) are the key companies competing with NIKE in the global market.

adidas stands as NIKE’s strongest global competitor, combining performance innovation with cultural relevance. The company is rebuilding momentum through its “Own the Game” strategy, which emphasizes direct-to-consumer growth, digital expansion and sustainability. Revitalized classics like the Samba and Gazelle have fueled a powerful lifestyle resurgence, while core performance categories such as running and football continue to benefit from strong innovation and athlete partnerships. With renewed focus on brand storytelling and premium positioning in key markets, adidas is regaining consumer trust and narrowing the gap with NIKE in the global sportswear race.

lululemon has evolved from a niche yoga brand into a global performance and lifestyle powerhouse. Its “Power of Three ×2” strategy focuses on expanding men’s and digital sales while accelerating growth in international markets, particularly China. Known for its premium quality, technical fabrics and community-driven approach, lululemon continues to capture consumers seeking both style and performance. The brand’s recent entry into footwear and running further deepens its competition with NIKE, positioning it as a formidable challenger that bridges athletic functionality with modern, fashion-forward design.

NKE’s Price Performance, Valuation & Estimates

Shares of NIKE have lost 8.7% year to date compared with the industry’s decline of 11.4%.

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Image Source: Zacks Investment Research

From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 34.92X compared with the industry’s average of 29.37X.

Zacks Investment Research
Image Source: Zacks Investment Research


The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 23.6%, while that for fiscal 2027 indicates growth of 50.5%.

 

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Image Source: Zacks Investment Research

NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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