Nike and Skims launch lower-priced activewear, challenging Lululemon

Lululemon is facing fresh competitive pressure after Nike and Kim Kardashian West’s Skims brand launched a joint activewear line on Friday, offering lower-priced items in key categories at a time when Lululemon’s sales momentum has cooled. The NikeSkims collection, which began rolling out online and in select stores, includes 58 styles such as biker shorts, racerback tanks, track jackets, gym bags and yoga mats and is being promoted with athlete endorsements and advertising featuring figures including Serena Williams and several Olympic competitors.

Analysts say the new line could undercut pricier rivals. Anna Andreeva of Piper Sandler estimated that NikeSkims prices are roughly 35 percent lower than comparable products from competitors, and she said that could weigh on Lululemon, particularly among younger shoppers, as the NikeSkims assortment expands. Nike Chief Executive Elliott Hill has said the partnership will be rolled out globally across multiple seasons.

The rollout drew visible consumer interest. Shoppers queued at Nike and Skims stores on Fifth Avenue in New York, close to a Lululemon location, and one customer, Janel Tasker, 31, said she arrived early to see the...