What's Happening?
Skims, the shapewear and apparel brand founded by Kim Kardashian, has raised $225 million in a new funding round led by Goldman Sachs Alternatives, valuing the company at $5 billion. The funding will support
Skims' expansion into brick-and-mortar stores and international markets, as well as product innovation and diversification. Skims plans to transition from a digital-first brand to a predominantly physical business, with 18 stores across the U.S. and plans for overseas expansion. The funding follows the successful launch of NikeSkims, a collaboration with Nike, indicating Skims' ambitions to enter the mainstream athleticwear market.
Why It's Important?
Skims' significant valuation and funding round highlight the brand's rapid growth and potential impact on the apparel industry. The shift towards physical retail and international expansion reflects a strategic move to increase market presence and consumer accessibility. The collaboration with Nike and the focus on product diversification position Skims to compete with established athleticwear brands, potentially reshaping the market dynamics. This development underscores the importance of innovation and strategic partnerships in driving brand growth and consumer engagement.
What's Next?
Skims' expansion plans and product diversification efforts could lead to increased competition in the athleticwear and apparel markets. The brand's focus on physical retail may influence other digital-first companies to consider similar strategies. As Skims continues to grow, its impact on industry trends and consumer preferences will be closely watched, particularly in terms of inclusivity and innovation. The potential delay of an IPO allows Skims to focus on scaling operations without immediate pressure to list publicly.
