What's Happening?
Skims, the shapewear brand co-founded by Kim Kardashian, has successfully raised $225 million in a new financing round. This capital injection values the company at $5 billion and is aimed at expanding its brick-and-mortar retail footprint. Currently,
Skims operates 18 stores in the U.S. and two franchise locations in Mexico. The funding round was led by Goldman Sachs Asset Management, with participation from BTD & MSD Partners’ affiliated funds. The company plans to use the funds to enhance product innovation and expand its categories, particularly in apparel and activewear. This move is part of Skims' strategy to transition into a predominantly physical retail business over the coming years.
Why It's Important?
The significant investment in Skims underscores the brand's ambition to solidify its market position in the intimates and shapewear industry while expanding into new categories. This expansion into physical retail is a strategic shift that could enhance customer engagement and brand visibility. For investors, the move represents confidence in Skims' potential to disrupt the apparel market further. The involvement of major financial players like Goldman Sachs highlights the perceived growth opportunities in the retail sector, particularly for brands that can innovate and adapt to changing consumer preferences. This development could influence other digital-first brands to consider similar expansions into physical retail spaces.
What's Next?
Skims is expected to continue its expansion efforts, focusing on increasing its retail presence and product offerings. The collaboration with Nike, which launched in September 2025, indicates potential future partnerships that could further boost the brand's market reach. As Skims grows its physical footprint, it may face challenges such as navigating the competitive retail landscape and maintaining its brand identity across different markets. Stakeholders will likely monitor how effectively Skims can leverage its new capital to achieve sustained growth and innovation.
