Skims Valued at $5B After $225M Funding Boost

Celebrity-founded shapewear brand Skims, co-founded by Kim Kardashian, has reached a valuation of $5 billion (£2.93bn) after raising $225 million in new funding. The investment round, which includes participation from an arm of Wall Street banking giant Goldman Sachs, is among the largest funding rounds this year for a U.S. consumer brand.

The company plans to use the fresh capital to expand its global footprint and open more physical stores, with a primary focus on its brick-and-mortar retail business over the coming years.

"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 on Wednesday.

Skims, which debuted in 2019 with a line of shapewear, has since expanded into loungewear and other fashion categories. The brand currently operates 18 stores across the United States and sells products worldwide through retail partners.

The company expects sales to top $1 billion this year, a milestone that Skims CEO Jens Grede said gives the firm confidence to pursue long-term growth plans.

The brand has also entered the mainstream sports and athleisure market, which is largely dominated by brands such as Lululemon and Alo Yoga, while leveraging a large influencer network—including the Kardashians, Megan Fox, and Paris Hilton—to enhance its appeal.

Skims has faced some controversies since its launch. Its original name, Kimono Intimates, drew criticism for disregarding the cultural significance of the traditional Japanese garment, prompting the company to rebrand as Skims. Additionally, some of its products, such as a head wrap designed for facial contouring during sleep, have divided public opinion—garnering both praise as innovative and criticism for promoting unrealistic beauty standards.

With this new funding, Skims is positioning itself for global expansion, increased physical retail presence, and further innovation in the fashion and shapewear industry, as it competes with established players in the market.