Skims, the shapewear brand co-founded by celebrity and entrepreneur Kim Kardashian, has announced it is now valued at an astonishing $5 billion (£2.93 billion) after successfully closing a major funding round that raised $225 million.
The substantial new funding comes from high-profile investors, including an arm of Wall Street banking giant Goldman Sachs.
Global Expansion and Retail Focus
Kim Kardashian stated that the new capital would be used to significantly expand the company’s retail footprint and global presence.
“We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry,” Kardashian said on Wednesday.
The funding round is one of the biggest this year for a U.S. consumer brand and arrives as Skims faces fierce competition from rivals in the athleisure market, such as Lululemon.
Skims, which currently operates 18 shops in the U.S. and sells its products through retailers worldwide, stated it will focus “predominantly” on its physical retail business over the next few years. Skims chief executive Jens Grede said the company expects its sales to top $1 billion this year, giving the firm the confidence to pursue its long-term goals.
Brand History and Controversy
The brand debuted in 2019 primarily with shapewear and has since broadened its range to include loungewear and other fashion categories. Its growth has propelled it deeper into the mainstream sports and athleisure market, largely dominated by brands like Lululemon and Alo Yoga.
Skims relies heavily on a large pool of celebrity influencers, including the Kardashians, Megan Fox, and Paris Hilton, to boost its massive global appeal.
Since its launch, the company has navigated some notable controversies:
- Initial Naming: Its original name, Kimono Intimates, was widely criticized for disregarding the cultural significance of the traditional Japanese outfit, prompting the company to quickly pivot to the name Skims.
- Product Backlash: One product, a head wrap worn during sleep, divided the internet, with some critics condemning it as dystopian and suggesting the firm was promoting insecurity among women.
Source: BBC
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