What's Happening?
Skims, the shapewear and loungewear brand co-founded by Kim Kardashian, has reached a valuation of $5 billion after securing $225 million in new investment. This funding round, which includes backing from
a Goldman Sachs investment arm, is one of the largest raised by a U.S. consumer brand this year. The capital will be used to accelerate the brand's physical retail expansion and international growth. Skims, founded in 2019, initially focused on shapewear but has since expanded into loungewear and other apparel lines, entering the mainstream athleisure and sportswear market. The brand leverages a strong influencer network, including Kardashian, Megan Fox, and Paris Hilton, to drive global demand. Skims currently operates 18 standalone stores in the U.S. and plans to focus on bricks-and-mortar growth in the coming years.
Why It's Important?
The significant valuation and investment in Skims highlight the brand's rapid growth and the increasing consumer demand for shapewear and loungewear. This development underscores the potential for further expansion in the global apparel market, particularly in the athleisure and sportswear segments. The funding will enable Skims to enhance its retail presence and compete with established players like Lululemon and Alo Yoga. The brand's success also reflects the power of celebrity influence in driving brand recognition and consumer engagement. As Skims continues to expand internationally, it could set new standards in the industry and influence market trends.
What's Next?
Skims plans to focus on expanding its physical retail footprint, with a particular emphasis on bricks-and-mortar stores. The brand is also eyeing international markets, with plans to open its first standalone flagship store on London's Regent Street by summer 2026. This expansion strategy could lead to increased market share and further solidify Skims' position in the global apparel industry. Stakeholders, including investors and retail partners, will likely monitor the brand's growth trajectory and market performance closely.
