Skims, the shapewear brand co-founded by celebrity entrepreneur Kim Kardashian, has now reached a staggering valuation of $5 billion (£2.93 billion) after raising $225 million in new funding. The funding round is one of the largest this year for a U.S. consumer brand and demonstrates significant investor confidence in the company's growth potential.
Among the investors is a unit of Wall Street banking powerhouse Goldman Sachs, with the financing aimed at expanding the brand's retail footprint and enhancing its global presence. Kardashian remarked, We can't wait to take Skims to the next level as we continue to innovate and set the standard for our industry.
Currently, Skims operates 18 stores across the U.S. and plans to direct its efforts toward establishing more physical locations in the coming years. The company forecasts its sales to surpass $1 billion this year, which has emboldened its leadership, including CEO Jens Grede, to pursue ambitious long-term growth goals.
Launched in 2019, Skims began with a focus on shapewear and has since diversified its product offerings to include loungewear and various fashion items. Despite facing competitive pressure from established brands like Lululemon, Skims has tapped into a vast network of influencers, including the Kardashians and notable celebrities like Megan Fox and Paris Hilton, to bolster its brand image.
Nevertheless, the brand has not been without controversy; it previously faced criticism due to its original name, Kimono Intimates, which was seen as culturally insensitive, leading to a rebranding as Skims. Additionally, products like a head wrap designed to contour the face sparked debates on the impact of beauty standards on women's self-esteem.
