Skims, the Hollywood shapewear and apparel brand co-founded by reality star Kim Kardashian, has raised $225 million in new capital, boosting its valuation to about $5 billion.
Goldman Sachs Alternatives, an investment platform within Goldman Sachs Asset Management, led the new funding round – with participation from BDT & MSD Partners and existing investors.
The deal – considered one of the largest private raises for a U.S. consumer brand this year – marks another milestone for the company launched in 2019 by Kardashian and Swedish fashion entrepreneur Jens Grede, known for co-founding the denim brand Frame, sportswear line Brady and the cleaning products company Safely.
The company was valued at $4 billion following a 2023 funding round that raised $270 million. Skims expects to exceed $1 billion in net sales this year – debuting several new product lines.
The 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 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.”
Grede echoed that sentiment. “This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth,” he said.
Expansion plans
Skims has earmarked the new capital infusion to bolster its expansion plans. That includes adding more brick-and-mortar stores and building out its international presence. The company has 18 retail stores in the U.S. and two franchise locations in Mexico.
The company said it is “laying the groundwork to be a predominantly physical business over the next few years.”
The funds will also go toward “product innovation and category expansion,” cementing its prominent spot within the shapewear and intimate apparel sector and “further scaling its presence within apparel and activewear.”
Skims has been on the move over the last year. In March, Kardashian bought back a 20% stake in her company Skkn beauty brand from Coty Inc., consolidating her beauty and lifestyle under one brand.
The company has also launched several new product lines. In July, the company also released its first-ever shapewear for the face, the Seamless Sculpt Face Wrap, after shutting down its makeup and skincare line in June.
After months of delays due to production issues, the company finally debuted NikeSkims in September, selling out within hours. Skims and Nike Inc. initially announced its partnership in February with a planned June launch.
“Skims stands as a solutions-driven apparel innovator, pioneering new categories and redefining everyday wear,” said Beat Cabiallavetta, global head of hybrid capital at Goldman Sachs Alternatives, in a statement. “We look forward to partnering with management to pursue significant opportunities and deliver disruptive, sustained growth.”
