Kim Kardashian’s Shapewear Brand, Skims, Hits $5 Billion Valuation
Skims, the innovative shapewear brand co-founded by celebrity entrepreneur Kim Kardashian, has reached a remarkable valuation of $5 billion (£2.93 billion) after securing $225 million in new funding. This impressive milestone reflects the brand’s growing influence and ambition in the fashion industry. Here’s what you need to know:
– Strategic Funding and Expansion Plans: The company intends to use the fresh capital from investors, including a division of Goldman Sachs, to open more physical stores and expand internationally. Kardashian expressed enthusiasm for enhancing Skims, stating, We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.
– Competitive Landscape: As one of the largest funding rounds this year for a U.S. consumer brand, Skims enters a competitive market, facing off against established players like Lululemon. The company operates 18 retail locations in the U.S. and distributes its products globally.
– Focus on Retail Growth: Skims plans to prioritize its physical retail business in the coming years. The firm anticipates annual sales exceeding $1 billion, a projection that CEO Jens Grede credits with bolstering their long-term aspirations.
– Diverse Product Range: Launched in 2019, Skims started with shapewear but has expanded its offerings to include loungewear and other fashion items. The brand aims to carve out a niche in the mainstream sports and athleisure market, competing with names like Lululemon and Alo Yoga.
– Celebrity Influence and Controversies: The brand harnesses the power of influencers and celebrities, from the Kardashian family to stars like Megan Fox and Paris Hilton, to enhance its appeal. However, Skims hasn’t been without controversy. Its initial name, Kimono Intimates, faced backlash for cultural insensitivity, leading to its rebranding. Additionally, one of its products—a head wrap—sparked debate over body image and marketing ethics.
In conclusion, Skims is positioning itself as a trailblazer in the shapewear industry, fueled by substantial investment and a commitment to innovation. As it continues to grow, the brand aims to redefine expectations in fashion and retail.