Dive Brief:
- Skims completed a funding round of $225 million in raised capital, which placed its valuation at $5 billion, per a Wednesday press release. The funding round was led by Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.
- The brand intends to use proceeds from the investment for its physical retail and international growth, in addition to fueling product innovation and category expansion in areas such as apparel and activewear.
- Skims expects to exceed $1 billion in net sales this year. The brand aims to become a predominately physical business over the next several years. It currently operates 18 owned U.S. retail stores and two franchise locations in Mexico.
Dive Insight:
Skims’ updated valuation comes two years after it raised $270 million in a Series C round that placed its valuation at $4 billion.
“Today’s announcement validates the hard work of our incredible team and partners who have helped us reach this exciting new chapter, becoming a global omnichannel retail brand,” co-founder and Chief Creative Officer Kim Kardashian said in a statement.
Kardashian founded Skims about six years ago, initially focused on women’s undergarments and shapewear. But the brand has grown its offerings since, launching a men’s category in 2023 and debuting an athletics collaboration with Nike called NikeSkims this past September.
A hint at upcoming category growth also comes from Coty’s March announcement that it would sell its 20% stake in Kim Kardashian-backed Skkn by Kim beauty brand to Skims. Details of the deal were not disclosed, but Skims will unite its beauty and lifestyle ventures under the larger brand following the deal’s closure.
Skims’ brick-and-mortar growth has been fairly fast-paced. The company opened its first permanent location in 2024 based in Washington, D.C., after testing the waters with pop-up shops in major cities such as New York City and Los Angeles.
