Skims Surges to $5 Billion Valuation Following $225 Million Funding

Skims, the shapewear brand co-founded by Kim Kardashian, has soared to a valuation of $5 billion (£2.93bn) after securing $225 million in fresh funding. This investment round, featuring participation from Goldman Sachs' investment arm, marks one of the most significant funding efforts for a U.S. consumer brand in 2023.

The brand intends to allocate the new funds towards international expansion and increasing its physical store presence, emphasizing a strong push for its retail business in the upcoming years.

"We are thrilled to elevate Skims as we strive to innovate and lead in our industry," Kardashian stated on Wednesday.

Launched in 2019 with its initial shapewear line, Skims has since branched into loungewear and other fashion sectors. Currently, the company operates 18 locations across the U.S. and sells its products through various retail partners globally.

Skims anticipates achieving over $1 billion in sales this year, with CEO Jens Grede highlighting this milestone as a push for long-term growth ambitions.

Entering the competitive landscape of sports and athleisure wear, Skims positions itself against established brands like Lululemon and Alo Yoga, tapping into a wide influencer network, including the likes of the Kardashians, Megan Fox, and Paris Hilton, to broaden its market appeal.

Despite its success, Skims has faced challenges since its inception. The brand's initial name, Kimono Intimates, faced backlash for cultural insensitivity, leading to a rebranding as Skims. Some of its innovative products, such as a head wrap intended for facial contouring during sleep, have sparked debate, drawing both admiration and criticism regarding beauty standards.

This new influx of funding positions Skims to advance its global reach, enhance its retail footprint, and innovate further within the fashion and shapewear sectors, firmly competing with established industry players.