Latest news with #NikeSkims
Fashion Network
20 hours ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times. with Reuters
Fashion Network
20 hours ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times. with Reuters ($1 = £0.73)
Fashion Network
a day ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times.
Business of Fashion
6 days ago
- Business
- Business of Fashion
This Week: Nike's Earnings and Jonathan Anderson's Dior Debut
We're all economics nerds in a post-Liberation Day world, so in a sense, this week's big reveal will be the Conference Board's monthly gauge of US consumer confidence, due out Tuesday. That survey will only tell us something about whether people are shopping, however. To find out what they'll be buying, we have Nike and Dior. Nike's Multifaceted Turnaround What's Happening: Nike reports fourth-quarter and full-year results on June 26. Analysts have an average forecast for sales to drop 15 percent for the quarter and 11 percent for the year, along with a sharp contraction in profits. Eye on the Horizon: Most have written off Nike's fiscal 2025, and will be instead watching for whether the sportswear giant releases guidance for the coming year, along with CEO Elliott Hill's outlook on the earnings call Thursday afternoon. FOMO: Nike watchers assume it's only a matter of time before the brand enters a new golden age, or at least halts its decline. Exactly when that will happen is the billion-dollar question; in a research note, UBS said Nike's stock may even be priced artificially high because investors worry they'll mistime the rebound (remarkable, given shares are trading close to an eight-year low). That dynamic provides Nike leadership a bit of breathing room to implement their plans, though it also increases the consequences if they push out their turnaround timeline. ADVERTISEMENT About Those Plans…: Nike learned the hard way why you don't put all your eggs in one basket, after its retro sneaker boom went bust. Along with marking down holdover Dunks, Nike is seeding numerous potential comeback efforts, including its (yes, retro) Vomero running shoe, the soccer cleat-inspired Cryoshots and reviving women's basketball sneakers with a signature shoe from the WNBA's A'ja Wilson. And of course there's NikeSkims, the new lifestyle sub-brand with Kim Kardashian. Even Nike-owned Converse is pitching in with a much talked about (though still unreleased) sneaker with basketball star Shai Gilgeous-Alexander. Patience Please: Any or all of these efforts could be the next great Nike franchise, but it will take years of meticulous execution to pull off. We'll find out Thursday if the company is confident enough in its plans to put a date on its return to form. A Big Debut at Dior Jonathan Anderson speaking at BoF Voices in 2023. (Getty Images) What's Happening: Jonathan Anderson makes his much-anticipated Dior debut with a men's show in Paris on June 27, the first and perhaps the biggest in a series of major designer debuts slated for the coming months. A Long Time Coming: Anderson was named creative director of Dior Men's in April, though his long-rumoured appointment to replace Maria Grazia Chiuri wasn't made official until earlier this month. Debuting with a men's show, rather than couture or women's, could be seen as a 'soft launch,' though given the many months of anticipation and the stakes, his collection won't lack for attention. Needing a Spark: The luxury sector is mired in its worst downturn in years. LVMH's brands, which initially defied the trend, are now struggling to keep customers engaged just like everyone else (though declines, while significant, are nowhere near the carnage at Gucci or Burberry). Creative directors can only do so much, but having the right vision and products makes the changes to supply chains and pricing architecture needed to revive the industry's prospects go down easier. The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to
Al Bawaba
7 days ago
- Business
- Al Bawaba
Nike delays Skims launch with Kim Kardashian indefinitely
Published June 21st, 2025 - 11:13 GMT ALBAWABA - Nike and Kim Kardashian 's Skims collaboration delayed indefinitely due to production issues. According to Bloomberg, the launch of NikeSkims has been postponed, so customers who were eager to acquire that sculpted Kardashian appearance will have to wait a little longer. NikeSkims is experiencing production delays, the business source claimed on Wednesday, citing people with knowledge of the situation. In an X post in February, Kardashian, the co-founder and chief creative officer of Skims, described NikeSkims as "a new brand coming this spring for the body-obsessed." US media personality Kim Kardashian (Photo by Etienne LAURENT / AFP) According to Bloomberg, Nike CEO Elliott Hill stated in March that the first "comprehensive collection" from the new brand would likely be accessible during the fiscal quarter that concluded in May. According to an unnamed insider who spoke to Bloomberg, Nike plans to launch the new brand later this year. The partnership with Skims will encompass training wear, footwear, and accessories "designed to meet the unique needs and preferences of women athletes around the world," according to a February Nike news release. Introducing NikeSKIMS. A new brand coming this spring for the body obsessed. Designed to sculpt and engineered to perform. — Kim Kardashian (@KimKardashian) February 18, 2025 The press announcement stated, "The new brand combines SKIMS' passion for the female form and innovative search for solutions for every body with NIKE, Inc.'s world-class approach to advanced innovation, sport science, and athlete insights." Nike stated at the time that a "global expansion" was planned for 2026 and that the first collection would make its domestic debut in the spring. The release date of the initial collection and its follow-up worldwide line is still unknown. Additionally, consumers are still unsure of the precise clothing items that will be part of the collection. In a February news release, Kardashian stated, "Nike and SKIMS share a deep commitment to innovation, inclusivity, and pushing boundaries, driven by an unwavering belief in the power of women." "This collaboration is the result of that common vision, providing product that is painstakingly crafted to sculpt and perform for every body," she added. Each and every element has been meticulously thought out and obsessed over. © 2000 - 2025 Al Bawaba (
