Kim Kardashian’s shapewear and apparel brand, Skims, has reached a $5 billion valuation after raising $225 million in new capital, marking a major milestone for the company and solidifying its status as one of the most valuable private consumer brands in the U.S. The funding round was led by Goldman Sachs Alternatives, with participation from BDT & Co. and MSD Partners, as well as existing investors. This injection of capital positions Skims for aggressive expansion, both domestically and internationally, as it continues to innovate and diversify its product offerings.
Rapid Growth and Strategic Expansion
Since its launch in 2019, Skims has grown at an extraordinary pace, leveraging Kardashian’s celebrity influence and a savvy digital-first strategy to build a global omnichannel retail brand. The company’s latest funding round brings its total valuation to $5 billion, up from $4 billion following a $270 million raise in 2023. Skims is now expected to exceed $1 billion in net sales this year, a testament to its rapid ascent in the competitive apparel and shapewear market.
The new capital will be used to accelerate Skims’ expansion plans, including the opening of additional brick-and-mortar stores and the strengthening of its international footprint. Currently, Skims operates 18 retail stores in the U.S. and two franchise locations in Mexico. The company has signaled its intention to become a “predominantly physical business” in the coming years, reflecting a shift toward a more balanced omnichannel approach that blends online and offline retail experiences.
Product Innovation and Category Expansion
Skims has consistently pushed the boundaries of the shapewear and intimate apparel sector, introducing new product lines and expanding into adjacent categories. In July, the company launched its first-ever shapewear for the face, the Seamless Sculpt Face Wrap, following the discontinuation of its makeup and skincare line in June. This move underscores Skims’ commitment to innovation and its ability to anticipate and respond to evolving consumer trends.
The company’s partnership with Nike Inc. has also been a significant driver of growth. After months of delays due to production issues, Skims and Nike finally debuted their collaborative line, NikeSkims, in September. The collection sold out within hours, highlighting the strong demand for Skims’ products and the power of strategic brand partnerships. The collaboration was initially announced in February, with a planned launch in June, but production challenges delayed the release until September.
Consolidation of Beauty and Lifestyle Brands
In March, Kim Kardashian bought back a 20% stake in her beauty brand, Skkn, from Coty Inc., consolidating her beauty and lifestyle ventures under one umbrella. This move allows Skims to further integrate its offerings and create a more cohesive brand experience for consumers. By bringing Skkn back under her control, Kardashian is positioning Skims as a holistic lifestyle brand that extends beyond apparel into beauty and wellness.
Leadership and Vision
Kim Kardashian and co-founder Jens Grede have been instrumental in Skims’ success. Kardashian’s hands-on approach and ability to connect with consumers have been key drivers of the brand’s growth. In a statement, Kardashian said, the announcement “validates the hard work of our incredible team and partners who have helped us reach this exciting new chapter, becoming a global omnichannel retail brand. We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.”
Industry Impact and Future Outlook
Skims’ $5 billion valuation is a significant achievement in the consumer goods sector, particularly for a brand that has only been in existence for six years. The company’s ability to scale rapidly, innovate consistently, and build a loyal customer base has set it apart from competitors. As Skims continues to expand its physical retail presence and introduce new product categories, it is well-positioned to maintain its momentum and further solidify its position as a leader in the apparel and lifestyle space.
The partnership with Goldman Sachs Alternatives is expected to provide Skims with the resources and expertise needed to pursue significant opportunities and deliver sustained growth. Beat Cabiallavetta, Global Head of Hybrid Capital at Goldman Sachs Alternatives, said, “Skims stands as a solutions-driven apparel innovator, pioneering new categories and redefining everyday wear. We look forward to partnering with management to pursue significant opportunities and deliver disruptive, sustained growth.”
