Skims, a shapewear brand co-founded by Kim Kardashian, has announced a new funding round that has raised $225 million (£171.5 million), increasing the company’s valuation to $5 billion. The investment group includes Goldman Sachs, which is part of a major Wall Street banking firm. Skims intends to use the funds to expand its physical retail presence and to promote global growth.
The recent funding marks one of the largest this year for a consumer brand in the United States, and it comes against a backdrop of increasing competition in the industry from names such as Lululemon. Skims currently operates 18 stores in the United States and has a distribution network through various retailers worldwide. The company indicated that it would prioritize its physical retail operations in the coming years.
Skims expects its sales to exceed $1 billion this year, a projection shared by CEO Jens Grede, which reportedly bolsters the firm’s confidence in its long-term plans. Launched in 2019, Skims started with a line of shapewear and has since diversified its offerings to include loungewear and additional fashion categories.
In the competitive landscape of athleisure and sportswear, Skims has been actively working to enhance its brand visibility by collaborating with various influencers, including high-profile figures such as the Kardashians, Megan Fox, and Paris Hilton.
Throughout its history, Skims has also encountered challenges. Initially named Kimono Intimates, the brand faced backlash for its name, which some criticized as disrespectful to the traditional Japanese garment. This feedback prompted a rebranding to Skims. Additionally, one of its products—a head wrap designed for sleep—sparked debate, with differing opinions on its impact on body image among women.
Source: https://www.bbc.com/news/articles/cly45dqpwywo?at_medium=RSS&at_campaign=rss