Skims, an apparel company co-founded by celebrity businesswoman Kim Kardashian, is worth $5 billion after a recent fundraising round.
The brand, known for its sleek bras and tank tops and sculpting bodysuits, completed a $225-million capital raise last week led by Goldman Sachs Alternatives. It was one of the largest private raises for a consumer brand in the United States this year.
Hollywood-based Skims plans to put the funds toward its physical retail footprint and international expansion efforts, a release from Goldman Sachs said. Skims opened its flagship L.A. store on Sunset Boulevard in April.
The company expects to exceed $1 billion in net sales in 2025. It was previously valued at $4 billion in 2023.
“Today’s 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,” Kardashian, who serves as chief creative officer, said in a statement. “We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.”
Kardashian and Skims’ Chief Executive Jens Grede launched the brand in 2019, after Kardashian had been in the public eye for more than a decade as a reality TV star and brand partner. Her visibility helped boost the brand in its early years and led to explosive sales growth.
With high-profile collaborations and carefully curated ad campaigns, Skims has gained a cult-like following. The company made a big dent in an area previously dominated by Spanx — selling form-fitting clothes to women meant to improve the wearer’s figure.
Skims has also added several new categories to its merchandise mix. The company’s menswear line is the official underwear partner of the NBA, and its bras, tops and sweatpants for women are hugely popular.
The apparel is available online and in 18 brick-and-mortar stores in states including New York, California and Texas. There are also two franchised locations in Mexico. Along with plans to expand further outside the U.S., the company said it will use its latest round of funding to invest in product innovation and category expansion.
“Skims stands as a solutions-driven apparel innovator, pioneering new categories and redefining everyday wear,” said Beat Cabiallavetta of Goldman Sachs Alternatives in a statement last week. “We look forward to partnering with management to pursue significant opportunities and deliver disruptive, sustained growth.”
The company’s swift rise was undoubtedly fueled in part by Kardashian’s name and marketing prowess. She models the latest collections herself, posting glossy professional photos and casual at-home closet videos to her millions of social media followers. She has tapped her A-list friends to star in Skims advertisements, including Lana Del Rey, Kate Moss, SZA, Cardi B, Sabrina Carpenter, Usher and Patrick Mahomes.
The rise of athleisure — stylish athletic clothing that can be worn at the gym or as everyday wear — also accelerated Skims’ growth. Skims offers clothing in a range of sizes and colors, successfully pulling off a balancing act of fashionable, cozy and practical.
Richard Lee, a research editor at CB Insights, told The Times last year that Skims has been able to capitalize on Kardashian’s popularity.
“It’s a really interesting example of the confluence of celebrity with technology and consumer trends,” he said.
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