Skims Valued at $5 Billion as Kim Kardashian’s Shapewear Brand Soars
Skims, the shapewear brand co-founded by Kim Kardashian, has reached a valuation of $5 billion after securing $225 million in new funding. This substantial funding round involved investors, including a division of Goldman Sachs.
Expansion Plans and Market Position
The brand aims to utilize this investment to expand its retail presence globally. Kim Kardashian expressed enthusiasm, stating, “We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.” This funding round marks one of the largest investments in a U.S. consumer brand this year.
Current Business Landscape
Skims currently operates 18 retail locations across the United States. The company plans to prioritize its physical retail business in the coming years, reflecting its commitment to enhancing in-store shopping experiences.
- Projected sales for 2023 are anticipated to exceed $1 billion.
- Skims launched in 2019, initially focusing on shapewear.
- The product range now includes loungewear and various fashion items.
The competitive landscape includes notable rivals like Lululemon and Alo Yoga, placing pressure on Skims to innovate continually. To strengthen its market presence, Skims has collaborated with a roster of influencers and celebrities, including the Kardashians, Megan Fox, and Paris Hilton.
Addressing Controversies
Despite its success, Skims has faced controversies. The brand’s original name, “Kimono Intimates,” drew criticism for cultural insensitivity, leading to its rebranding. Additionally, one product, a head wrap marketed for sleep, sparked divided opinions, with some viewing it as a revolutionary beauty tool, while others criticized it as promoting insecurity among women.
As Skims progresses, the brand continues to navigate both challenges and opportunities in a competitive retail environment, leveraging its celebrity status and innovative approach to build a solid foundation for future growth.
