Kim Kardashian has 354 million followers on Instagram and a $5 billion company to boot.
Skims said Wednesday that it completed a $225 million capital raise that valued the company at a cool $5 billion.
For a brand that launched in 2018, that’s a rapid move up the growth curve.
The new money came from Goldman Sachs Alternatives and BDT & MSD Partners.
Skims got its start in shapewear, but has been branching out in apparel and looking more into beauty, recently hiring Diarrha N’Diaye to be executive vice president of beauty and fragrance.
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Now, as the company expects to top $1 billion in net sales this year, it has a little something extra to project its brand out into the world.
Of course, Kardashian already knows how to get attention. Already this year she kept the brand in the headlines with its provocative offerings, including the bush thong, as well as through the introduction of the NikeSkims collaboration, the second drop of which occurred this week.
In a statement to WWD, Jens Grede, cofounder and chief executive officer, said: “This financing marks a pivotal next step for Skims and is a testament to all we have accomplished over the last six years. We’re thankful to our partners for their support and look forward to using the additional capital to accelerate our physical retail strategy, international expansion and innovation in new categories.”
Skims currently has 18 owned stores in the U.S. and two franchise doors in Mexico.
While Kardashian made her splash online and on the small screen, the company is looking to become a “predominantly physical business over the next few years.”
Kardashian said: “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. We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.”
Now Goldman Sachs and BDT & MSD are along for the ride.
“Skims stands as a solutions-driven apparel innovator, pioneering new categories and redefining everyday wear,” said Beat Cabiallavetta, global head of hybrid capital at Goldman Sachs Alternatives.
Greg Olafson, president and co-chief investment officer at BDT & MSD, said: “We are pleased to support Skims in its continued growth and success, and to partner with founders who combine creativity with strong business leadership.”
Skims was valued at $4 billion in a fundraising round in 2023 that was seen as a prelude to an initial public offering, setting a price that the broader market could then work off. But it was not to be and the stock market stars never aligned.
Now Skims has a new valuation that the next investors — whomever they might be and whenever they come along — can ponder.
