Kim Kardashian’s Skims Soars to $5 Billion Valuation
Kim Kardashian
Image Credit: Getty Images
Skims, the shapewear and apparel company co-founded by Kim Kardashian, has reached a valuation of $5 billion following a new $225 million funding round. The firm confirmed that the investment was backed in part by a unit of Goldman Sachs, marking one of the largest funding deals for a US consumer brand this year. The latest valuation places Skims among the most closely watched players in the global fashion and retail industry, where the brand has attempted to carve out a distinct position since its launch in 2019.
The company said the new capital will support a broader retail push, with a strong focus on expanding physical storefronts both in the United States and internationally. Skims already operates 18 shops across the country and distributes its products through retailers worldwide. According to the company’s statement, the priority now is to scale this footprint and strengthen its reach in markets where consumer demand for shapewear, basics, and athleisure continues to rise.
Kim Kardashian said in a brief statement that the goal is to “take Skims to the next level” as the brand continues to develop new product categories. Her involvement has contributed to extensive global visibility, supported by a large online presence and an ecosystem of celebrity and influencer collaborations. These campaigns have helped Skims build a dedicated customer base and compete directly with larger, more established brands in the apparel and activewear space.
The company expects to surpass $1 billion in net sales this year, a milestone CEO Jens Grede says reinforces investor confidence in the brand’s long-term plans. Skims has expanded steadily from its original shapewear line to include loungewear, apparel, and other categories that place the company firmly within the mainstream athleisure and lifestyle market. This has brought Skims into increasing competition with names such as Lululemon and Alo Yoga, which have dominated the sector for years.
Skims’ marketing strategy has been a big element of its quick rise. The company often works with famous people like Megan Fox and Paris Hilton, which adds to the awareness that Kim Kardashian’s own worldwide reach brings. The plan has kept Skims in the middle of online discourse, especially on social media, where new product introductions and limited-time offers get a lot of attention. Experts in the field believe this approach is part of a larger change in how people shop, where businesses related to celebrities have a lot of power in both fashion and lifestyle industries.
There has been some disagreement over Skims’ rise. The brand once went by the name Kimono Intimates, which drew criticism right away since it sounded too much like traditional Japanese clothing. After people complained, Skims changed its name. Another product, a head wrap for sleeping, caused a lot of discussion online when some people questioned the beauty standards it would set. Some others said it was a new way to shape the face without surgery. While the company navigated these discussions, the incidents did little to slow its commercial momentum.
The latest funding round reflects continued interest from major institutions in consumer brands blending digital reach with retail growth. For investors, Skims represents a company with a strong market presence and a business model that has shown resilience in a crowded sector. Although the company has not commented on Skims IPO speculation, the valuation and the brand’s sales trajectory have fueled discussion about whether a public offering could be part of its future.
The new valuation also raises questions about Kim Kardashian’s overall financial landscape. With Skims increasingly central to her business portfolio, the latest funding round could have a notable impact on her net worth, though the company has not disclosed details of individual shareholder stakes. Financial analysts say the brand’s continued expansion puts it in a valuation range comparable to legacy companies such as Victoria’s Secret, emphasizing how quickly Skims has moved into the upper tier of the shapewear and apparel market.
As Skims moves forward with its plans to open more stores and go global, the company’s ability to keep going will be closely watched. Skims has become a big player in its field thanks to its strong sales, large investment support, and global exposure. The brand’s ability to stay competitive at this level will likely depend on how well it manages growth and customer standards in a market that is getting more and more competitive.
This content was adapted from an article in BBC
