Skims Reaches $5 Billion Valuation Following $225 Million Funding Round

Post by : Mina Rahman

The celebrity-driven shapewear label Skims, co-founded by Kim Kardashian, has achieved a remarkable valuation of $5 billion (£2.93 billion) after successfully securing $225 million in a fresh funding round. This significant investment, featuring participation from an affiliate of Wall Street powerhouse Goldman Sachs, marks one of the largest funding rounds for a U.S. consumer brand this year.

Utilizing this new capital, the company aims to broaden its global presence and intensify its physical store openings, prioritizing brick-and-mortar retail growth in the near future.

"We are excited to elevate Skims to new heights as we continue to lead and innovate within our sector," stated Kardashian on Wednesday.

Since its launch in 2019 with a focus on shapewear, Skims has diversified into loungewear and various other fashion realms. The brand currently boasts 18 locations throughout the United States as well as global sales via retail partners.

Anticipating sales to exceed $1 billion this year, Skims CEO Jens Grede indicated that this achievement bolsters the company's confidence in pursuing long-term growth ambitions.

Skims is also paving its way into the competitive sports and athleisure market, primarily dominated by brands like Lululemon and Alo Yoga, while employing a vast influencer network—including the Kardashians, Megan Fox, and Paris Hilton—to boost its market desirability.

Since its inception, Skims has faced challenges, including the backlash of its original name, Kimono Intimates, which ignored the cultural weight of the traditional Japanese attire, leading to a rebranding as Skims. Some of its products, such as a head wrap designed for facial contouring during sleep, have received mixed reactions—being lauded as innovative while also criticized for promoting unrealistic beauty ideals.

With this infusion of funding, Skims is set to enhance its global strategy, amplify its physical retail locations, and foster further innovation in the shapewear and fashion sectors as it competes with established market leaders.