Photo from: Greg Swales/ SKIMS
In the world of fashion, few names resonate as powerfully as Kim Kardashian. Known for her trendsetting style and larger-than-life persona, Kim has transformed herself from a reality TV star to a business mogul. One of her most successful ventures, Skims, has recently achieved a remarkable milestone: a valuation of $4 billion.
Skims, a brand specialising in shapewear and intimates, has come a long way since its inception in 2019. Founded by Kim Kardashian and her business partner, Jens Grede, the brand started as a solution for customers looking to achieve the perfect silhouette under their body-hugging outfits. However, Skims quickly outgrew its initial niche and diversified into various clothing categories, including loungewear and swimwear, with plans to venture into men’s clothing this fall.
The company’s remarkable growth trajectory has not gone unnoticed. In its latest Series C funding round, Skims secured a staggering $270 million, which propelled its valuation to the coveted $4 billion mark, up from $3.2 billion in 2022. Led by Wellington Management and featuring participation from Green Oaks Capital Partners, D1 Capital Partners, and Imaginary Ventures, this influx of capital will be dedicated to fueling product innovation, expanding its product range, and making its presence felt in the world of retail.
What sets Skims apart is its ability to adapt and cater to evolving consumer preferences. As Kim Kardashian puts it, “It has grown quickly, and we’re so proud of that. We’ve had a really good flow of product launches.” This adaptability has led to a significant shift in the brand’s sales composition, with shapewear no longer being the dominant force. Instead, Skims now offers a diverse range of clothing options to its customers, and this trend shows no signs of slowing down.
Furthermore, Skims is breaking new ground by making a bold bet on physical retail. In 2024, the brand plans to open its flagship stores in Los Angeles and New York City. This move signifies Skims’ commitment to providing customers with an immersive shopping experience while maintaining its strong online presence.
Skims’ Chief Executive, Jens Grede, is optimistic about the brand’s future. He states that the company is not only profitable but also on track to achieve an impressive $750 million in sales this year, compared to $500 million in 2022. This growth is further emphasised by the fact that over the last year, 11 million people have eagerly joined waitlists to secure the brand’s most sought-after items, which frequently sell out.
Skims’ remarkable success story has drawn the attention of investors and has left many wondering when the brand plans to go public. While Grede and Kardashian remain coy about the exact timeline, it’s clear that they’re in no rush. Nevertheless, the involvement of Wellington Management, known for its investments in companies pre-IPO, suggests that taking the brand public is not off the table.
Kim Kardashian’s Skims brand is undoubtedly a fashion phenomenon to watch. Its journey from shapewear to a $4 billion valuation reflects not only the power of celebrity entrepreneurship but also the brand’s ability to adapt, diversify, and thrive in an ever-changing market. With physical stores on the horizon and continuous innovation, Skims shows no signs of slowing down, leaving us excited to see what’s next for this fashion powerhouse.
Source: Business of Fashion, New York Times