Just a few days after a woman claimed Skims shapewear saved her life, the company has been valued at a whopping $4 billion.
It’s been four years since Kim Kardashian co-founded Skims, and now, the apparel company is worth $4 billion.
According to reports from The New York Times, Skims recently raised $270 million in a new funding round that values the company at $4 billion. That valuation is up from the $3.2 billion valuation investors gave the company just last year.
Ms. Kardashian and her business partner, Jens Grede, have turned Skims into the next big apparel brand, which is exactly what they set out to do.
“It has grown quickly and we’re so proud of that,” Kardashian said in an interview. “We’ve had a really good flow of product launches.”
The company first began as a seller of shapewear to help customers feel more comfortable while wearing body-hugging clothing, but it has since become so much more. Over the course of the past few years, Skims has expanded into an array of clothing categories, including loungewear and swimwear, with plans to branch out into men’s clothing this fall.
Currently doing most of their sales online, Skims also has plans to open its first flagship stores next year in Los Angeles and New York City.
Grede said in an interview that the company was now profitable and on track for $750 million in sales this year, up from $500 million in 2022. About 15 percent of its online customers come from outside the United States, and nearly 70 percent of its overall customers are millennials or Gen Z-ers.
In just the last year, 11 million people have reportedly joined waitlists to buy the brand’s most-popular items, which often sell out shortly after their launch.
That very growth trajectory and undeniable popularity is what drew investors to the company when executives began raising money in recent months, according to Grede. Asset manager Wellington Management led the latest round.
“Skims has maintained unprecedented momentum since the brand’s inception,” Michael Carmen, a co-head of private investments at Wellington, said in a statement. “We’re thrilled to partner with the brand to support it through this pivotal growth stage.”
With physical stores and menswear on the horizon, it looks like it’s only up from here for Skims.