Another Fork In Nike's Turnaround Plan? Upcoming Launch With Kim Kardashian's Skims Reportedly Delayed

Nike (NKE) has reportedly pushed the launch of its activewear collection in partnership with TV star Kim Kardashian's Skims label due to production delays. The widely anticipated collection, first announced in February, was planned for release in the spring. 

But now, according to a Bloomberg report citing sources familiar with the matter, NikeSkims products may arrive late this year or next year, due to production delays.

The news is another blow for Nike CEO Elliott Hill, who returned from retirement late last year and is trying to revitalize the iconic brand by refining its retail strategy and introducing new premium products. Bad moves in those areas have dented Nike shares and sales in recent years.

The sportswear giant’s stock is down 21.4% year-to-date.

The partnership is crucial for both companies. Nike is counting on Kardashian to help boost its women's business and add cultural relevance as it looks to spark a turnaround. Skims, meanwhile, has an opportunity to solidify its presence in the activewear market by teaming up with the world's largest sportswear company.

On Stocktwits, the retail sentiment remained 'bearish,' unchanged from a week ago.

Some users expressed enthusiasm for the company, given prospects for an imminent trade deal between the U.S. and Vietnam. American brands, including Nike, rely heavily on the Southeast Asian country for production.

Earlier this week, Bank of America reiterated its 'buy' rating on NKE and said that the company's fiscal fourth quarter is expected to see peak sales and margin pressure, with performance improving thereafter. 

Nike will report Q4 results on June 26, after the market closes.

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