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Skims secures $5bn valuation with $225m funding round led by Goldman Sachs
Skims, the shapewear brand co-founded by entrepreneur Kim Kardashian, has reached a $5 billion valuation after raising $225 million in new funding, the company announced Wednesday. Investors include Goldman Sachs, marking one of the largest funding rounds this year for a U.S. consumer brand.
Expansion plans and retail focus
Funds will primarily support Skims' global expansion and physical retail growth, with plans to open more stores in the coming years. The brand currently operates 18 U.S. locations and sells through international retailers. CEO Jens Grede projects sales will exceed $1 billion in 2025, fueling confidence in long-term ambitions.
"We can't wait to take Skims to the next level as we continue to innovate and set the standard for our industry," Kardashian said.
Market competition and product evolution
Skims, launched in 2019 as a shapewear line, has expanded into loungewear and athleisure, competing with giants like Lululemon and Alo Yoga. Its growth strategy leans on celebrity endorsements, including Megan Fox and Paris Hilton, alongside the Kardashian family's influence.
Controversies and public reception
The brand faced backlash in 2019 over its original name, Kimono Intimates, accused of cultural appropriation. After rebranding to Skims, it later sparked debate with a sleep head wrap-praised by some as innovative but criticized by others as promoting beauty insecurity.
What's next
Skims will prioritize physical retail expansion while navigating a competitive market. The company's next financial review is expected later this year, with potential adjustments to its growth strategy.
