Shares of retailer Nike (NKE) are flat at the time of writing after news broke that its upcoming brand launch with Kim Kardashian, called NikeSkims, is facing delays. The collection was originally set to launch this spring, but production issues have pushed the release to later this year. Despite the setback, Nike still plans to release NikeSkims products before the end of the year, which is expected to be a highly anticipated launch.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The NikeSkims brand is part of Nike’s strategy to connect better with women and younger customers by bringing in Kim Kardashian’s influence. It will have its own line of products, marketing, and goals, separate from Nike’s main divisions, such as basketball and running. Skims was started by Kim Kardashian, who serves as its Chief Creative Officer, alongside Jens Grede as CEO and Emma Grede. In addition, the brand has strong financial backing from investors like Greenoaks and D1 Capital Partners.
Nevertheless, even with the delay, analysts remain positive about Nike’s long-term growth potential. Indeed, many believe that NikeSkims could help Nike gain more market share in the growing women’s activewear space. For example, Jefferies analyst Randal Konik said that the partnership combines Nike’s product innovation with Skims’ focus on inclusivity. While he maintains a Hold rating on Nike due to near-term challenges, he still sees strong long-term potential in the collaboration, calling it an exciting move for the industry.
Is Nike Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 13 Buys and 12 Holds assigned in the last three months. Furthermore, the average NKE price target of $74.41 per share implies 24.2% upside potential.
