Skims, the shapewear and loungewear brand co-founded by celebrity and entrepreneur Kim Kardashian, has announced a significant milestone, reporting a $5 billion (£2.93 billion) valuation following a $225 million funding round. The investment includes contributions from high-profile backers, such as an arm of Wall Street giant Goldman Sachs, reflecting growing confidence in the company’s long-term potential.
The company stated that the new funds will primarily be directed toward expanding its physical retail presence and pursuing international growth. Currently, Skims operates 18 stores in the United States and sells its products through various global retailers.
“We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry,” Kim Kardashian said on Wednesday, highlighting the brand’s commitment to innovation, inclusivity, and mainstream appeal.
The recent investment round is one of the largest of the year for a US consumer brand, underscoring Skims’ remarkable growth since its 2019 launch. The company initially entered the market with a line of shapewear, quickly becoming a cultural phenomenon. Over time, it expanded into loungewear, athleisure, and other fashion categories, positioning itself in the broader mainstream sports and leisurewear market, where competitors like Lululemon and Alo Yoga dominate.
Skims CEO Jens Grede noted that the brand expects sales to exceed $1 billion in 2025, which has bolstered its confidence in pursuing long-term strategic goals, including retail expansion, new product development, and global distribution.
“We’re focusing predominantly on our physical retail business over the next few years. Retail stores are not just sales points—they’re experiential hubs where customers can engage with our brand and products in person,” Grede explained.
Skims Hits $5 Billion Valuation Following $225 Million Funding Round
A key factor in Skims’ meteoric rise has been its strategic use of celebrity and influencer marketing. Beyond Kim Kardashian, the brand has partnered with stars like Megan Fox and Paris Hilton, creating viral campaigns that resonate across social media platforms. Influencers help amplify Skims’ message of body inclusivity and confidence, giving it an edge in a highly competitive market.
The brand’s marketing strategy has also emphasized diversity in body types, skin tones, and sizes, setting it apart from traditional shapewear brands that often prioritized a narrow definition of beauty. This approach has helped Skims gain widespread recognition and a devoted customer base willing to engage both online and in-store.
Skims has faced its share of controversies. The company’s initial name, Kimono Intimates, drew criticism for cultural insensitivity, as many viewed it as trivializing the traditional Japanese garment. Following widespread backlash, the brand quickly rebranded as Skims, a name that better aligned with its global aspirations while avoiding cultural appropriation.
Another Skims product—the head wrap designed for overnight use—sparked a mixed reception online. Supporters praised it as an innovative approach to non-invasive face contouring, while critics argued it contributed to unrealistic beauty standards and placed undue pressure on women to conform to new ideals of self-presentation. Despite the polarizing opinions, the product highlighted Skims’ willingness to experiment and push boundaries in the wellness and fashion space.
Since its debut, Skims has broadened its product offering to encompass athleisure, loungewear, and everyday essentials, positioning itself as a lifestyle brand rather than a single-category shapewear label. Its expansion reflects shifts in consumer behaviour, as comfort-focused, functional, and versatile clothing gains prominence in the post-pandemic era.
While competition in the sports and leisurewear market is fierce, Skims leverages its celebrity associations, inclusive marketing, and brand storytelling to carve out a distinctive niche. Industry analysts suggest that its ability to blend fashion, functionality, and celebrity appeal gives it a competitive advantage over traditional apparel brands attempting similar expansions.
With the $225 million funding infusion, Skims is poised for international growth, including plans to open more brick-and-mortar stores and expand its online retail footprint. By investing in retail experience, product innovation, and strategic partnerships, the brand aims to solidify its status as a billion-dollar lifestyle brand.
“This funding round is not just about numbers,” said Kardashian. “It’s about empowering women, innovating in fashion, and taking Skims to the next level globally. We’re creating more than clothing—we’re shaping a culture of confidence.”
As Skims continues to blend celebrity influence, inclusive marketing, and innovative product development, it remains a major force in shaping the future of fashion and athleisure, proving that a well-executed brand strategy can turn a startup into a multi-billion-dollar powerhouse in under a decade.
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Source- BBC
