What's Happening?
Skims, the brand founded by Kim Kardashian, has raised $225 million in a new funding round, increasing its valuation to $5 billion. The funding was led by Goldman Sachs Alternatives and BDT & MSD Partners.
Skims plans to use the funds to expand its physical retail presence and international growth, as well as to innovate and expand its product categories, including apparel and activewear. The brand, which started with women's undergarments and shapewear, has expanded into men's categories and launched a collaboration with Nike.
Why It's Important?
The significant valuation and funding highlight Skims' rapid growth and its potential to become a major player in the global retail market. The brand's focus on physical retail expansion suggests a strategic shift towards omnichannel retailing, which could influence other digital-first brands to follow suit. This move could also impact the competitive landscape in the apparel industry, challenging established brands and potentially leading to increased market competition. For investors, Skims' growth trajectory presents an attractive opportunity in the retail sector.
What's Next?
Skims plans to continue its expansion by opening more physical stores and exploring new product categories. The brand's integration of its beauty and lifestyle ventures under the Skims umbrella could lead to further diversification and growth. The market will be watching how Skims manages its expansion and whether it can maintain its growth momentum. Additionally, the impact of Skims' expansion on competitors and the broader retail industry will be closely monitored.
