Skims, the shapewear brand co-founded by celebrity and entrepreneur Kim Kardashian, recently announced its valuation at $5 billion (£2.93 billion) after successfully raising $225 million in its latest funding round.
The new financial backing comes from multiple high-profile investors, including an arm of Wall Street banking titan Goldman Sachs. Skims plans to channel these funds into increasing its physical retail presence and expanding its product offerings globally.
We can't wait to take Skims to the next level as we continue to innovate and set the standard for our industry, Kardashian stated on Wednesday.
This funding round is one of the largest for a U.S. consumer brand this year and comes at a time when Skims faces tough competition from established brands like Lululemon.
Currently operating 18 stores across the U.S. and distributing products through various global retailers, Skims is expected to concentrate significantly on its brick-and-mortar operations in the upcoming years. The company anticipates generating over $1 billion in sales this year, providing the confidence to pursue its long-term growth goals.
Making its debut in 2019 with a initial focus on shapewear, Skims has since diversified into loungewear and other fashion categories.
The brand has gained traction within the mainstream sports and athleisure markets, thanks in part to a roster of celebrity influencers endorsing it, including members of the Kardashian family and other stars like Megan Fox and Paris Hilton.
Despite celebrating its successes, Skims has faced controversies along the way, such as its initial name Kimono Intimates which was criticized for cultural insensitivity, leading to its rebranding as Skims.
Additionally, one of its products, a head wrap intended for sleep, generated mixed reactions online, with some labeling it innovative, while others deemed it problematic for promoting unrealistic beauty standards among women.
