Skims valued at 5 billion dollars following new funding

Kim Kardashian’s Skims brand has secured 225 million dollars in new funding, valuing the shapewear and apparel company at five billion dollars.

The latest round, which puts the brand ahead of the four billion dollars it was valued at in 2023, was led by Goldman Sachs, and saw further backing from funds affiliated with BDT & MSD Partners.

The news was confirmed to multiple media outlets, to which Skims said it was planning to use the new capital to accelerate brick-and-mortar and international expansion, alongside category diversification.

In a statement, CEO Jens Grede, who co-founded Skims alongside Kardashian, said: “This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth.”

Kardashian, Skims’ chief creative officer, added that the “announcement validates the hard work of our incredible team and partners who have helped us reach this exciting new chapter, becoming a global omnichannel retail brand”.

The deal comes as Skims continues to enjoy significant revenue growth since its founding in 2019. The company was said to have generated around 750 million dollars in sales in 2023, at which time it also became profitable. More recent reports suggest that for this year, the brand is nearing the billion dollar mark in net sales.

Performance has been boosted by Skims’ rapid retail expansion, with 18 stores now located throughout the US and Mexico. Additional stores are also planned to open in Europe next year, including one site in London.

The emphasis on retail reflects a mission to become a “predominantly physical business” in the coming years, Skims has now revealed.

The additional capital could cause continued delays for Skims’ IPO plans, however. Last year, speculation mounted surrounding a potential stock exchange listing after Grede told the Times that Skims “deserved” to be a public company. He later squashed rumours, saying that an IPO wasn’t an immediate priority.