Kim Kardashian's shapewear brand, Skims, has achieved remarkable success, reaching a valuation of $4 billion after raising $270 million in a recent funding round. In just four years since its inception, Skims has emerged as a major player in the fashion industry, expanding its offerings from exclusive shapewear to a wide range of apparel, including swimsuits and loungewear. The brand's continuous growth has made it a favorite among millennials and Gen-Z, with an impressive waitlist of eleven million for its most popular items.
From Profitability to Expansion: Skims' Journey
Skims has been profitable since its launch in 2019, but it has recently reached new heights of profitability. Its Chief Executive, Jens Grede, revealed that the company is expected to make $750 million in sales this year, a significant increase from $500 million in 2022. Skims' success has been driven by its popularity among consumers, attracting investors keen on supporting the brand's ongoing expansion.
Physical Stores and Men's Clothing on the Horizon
In addition to its online presence, Skims is now venturing into physical stores, with plans to open locations in Los Angeles and New York City next year. The move to brick-and-mortar stores aims to enhance the brand's accessibility and visibility to a broader audience. Furthermore, Skims is set to expand its offerings to include men's clothing in the fall, further diversifying its product line.
Investor Interest and Future Prospects
Skims' impressive growth trajectory and popularity have piqued investor interest. Wellington Management led the latest funding round, and other participating firms include Greenoaks Capital Partners. Skims' current backers, D1 Capital Partners, and Imaginary Ventures also continue to support the brand's journey.
The Path to Going Public
While the company's valuation, Wellington's involvement, and hiring of a Chief Financial Officer raise speculation about an eventual initial public offering (IPO), Kardashian and Grede are in no rush to take the company public. However, the interest shown by investors in consumer-facing businesses suggests that Skims' potential future as a public company remains a possibility.
Skims' Impact Beyond Fashion
Beyond its business success, Skims has made a meaningful impact on people's lives. Angelina Wiley, a young woman who survived a shooting incident on New Year's, credited her Skims bodysuit with potentially saving her life. The bodysuit's compression and fit prevented excessive bleeding, leading Wiley to describe it as “body armor for women.” Wiley's story, shared on TikTok, caught the attention of Skims co-founder Kim Kardashian, who responded with gratitude and support.
As Skims continues to grow and evolve, it remains a testament to the entrepreneurial spirit and vision of Kim Kardashian and her business partner, Jens Grede. With plans for physical stores and new clothing lines, Skims is set to further cement its position as a major fashion brand in the years to come.