Reality television star and entrepreneur Kim Kardashian has achieved another monumental business success, with her shapewear label Skims now valued at a staggering $5 billion following a major cash injection.
Major Investment Fuels Ambitious Growth
The company, which Kardashian founded in 2019 with CEO Jens Grede, announced on Wednesday that it had successfully raised $225 million in new capital. This significant funding round was spearheaded by the investment giant Goldman Sachs Alternatives, with additional participation from funds affiliated with BDT & MSD Partners.
This latest valuation underscores the powerful market appeal of celebrity-backed brands, which venture capital firms are increasingly betting on for their built-in marketing power and vast, ready-made audiences. Kardashian's own ventures, including her cosmetics line SKKN, have consistently attracted young shoppers, heavily leveraging her immense social media following.
A Trend of Celebrity Brand Success
This phenomenon is not isolated to Skims. The market has seen a surge in similar high-profile investments. Earlier this year, Elf Beauty agreed to acquire Hailey Bieber's Rhode makeup and skincare brand in a deal worth approximately $1 billion. Other notable examples include Rihanna's Fenty Beauty and Khloé Kardashian's Good American, both of which have also secured substantial venture capital funding.
Grede emphasised the significance of this milestone in a statement, saying, "This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth."
Strategic Plans for Global Domination
Skims has outlined ambitious plans for its new capital. The funds are earmarked to drive expansion across several key areas. The company intends to broaden its core intimates and shapewear lines and push further into the competitive apparel and activewear markets.
Enhancing its physical retail footprint is another critical priority. Known for its focus on inclusive sizing, Skims currently operates 18 retail stores across the United States and has two franchise locations in Mexico. The brand confirmed it is laying the groundwork to become a predominantly physical business in the coming years.
Further solidifying its position in the activewear sector, Skims has forged a strategic partnership with sportswear behemoth Nike to launch a dedicated women's activewear collection.
Financially, the brand is on a strong trajectory, reporting it is on track to exceed $1 billion in net sales by 2025. In a move to consolidate the businesses, Coty recently sold a 20% stake in Kardashian's beauty brand to Skims earlier this year, bringing the ventures closer under a single brand umbrella.
