The company plans to announce on Wednesday that Skims has secured $270 million in a fresh investment round that values it at $4 billion. Investors valued the business at $3.2 billion last year, so this is an increase.
The clothing brand Skims, which Kim Kardashian co-founded, has been in business for four years and has already achieved four unicorn statuses.
The company plans to announce on Wednesday that Skims has secured $270 million in a fresh investment round that values it at $4 billion. Investors valued the business at $3.2 billion last year, so this is an increase.
The goal of Kardashian and her business partner Jens Grede has been to make Skims the upcoming major clothes brand.
In an interview, Kardashian stated, “We’re very proud of how quickly it’s expanded. We’ve had a lot of successful product launches.
Shapewear was initially sold by the business to help clients fit into body-con dresses. But Skims has diversified into a number of clothing categories, such as loungewear and swimwear, and wants to enter the men’s apparel market this autumn. As a result, shapewear no longer accounts for the majority of its sales.
Skims, which was formerly renowned for selling directly to customers, is placing a wager on physical retail and expects to establish its first flagship locations in Los Angeles and New York City the following year.
The company is already profitable, according to Grede, the chief executive of Skims, and is on course to generate $750 million in revenues this year, up from $500 million in 2022. Nearly 70% of its total clients are millennials or members of Generation Z, and 15% of its online customers are from countries other than the United States.
He claimed that over the past year, 11 million people have signed up for waitlists in order to purchase the brand’s bestselling items, which frequently sell out.
Grede claims that the company’s development trajectory and popularity are what attracted investors when executives started soliciting money in recent months. The most recent round was led by the asset manager Wellington Management. Along with the current funders D1 Capital Partners and Imaginary Ventures, additional collaborating companies include Greenoaks Capital Partners.
According to a statement from Wellington’s co-head of private investments, Michael Carmen, “Skims has maintained unprecedented momentum since the brand’s inception.” We are pleased to work with the brand to support it through this critical growth phase.
One of the most notable aspects of Kardashian’s commercial empire, which now encompasses beauty care, fragrances, and even a private equity firm, is the success of Skims. Kardashian, who became a billionaire after the 2021 financing round for Skims, continues to be the sole largest stakeholder in the business, and she and Grede jointly still have a majority stake.
Early on, Skims had to deal with supply-chain problems brought on by the epidemic that made it challenging to find textiles for its apparel.
The management of inventory as the business grows its services and builds physical locations, as well as competing against businesses that provide large discounts as consumers cut back on discretionary spending in the face of high inflation, are significant problems right now, according to Kardashian and Grede. This issue, which has plagued other retail businesses, may worsen as Skims establishes its own storefronts, according to Kardashian.
Given both the company’s rising valuation and the presence of Wellington, which is known for investing in companies before they go public, Skims’ most recent investment is likely to raise concerns about when it wants to go public. The clothing manufacturer has also made other moves typical of companies preparing for initial public offerings, such as hiring a chief financial officer last year.
Grede resisted when asked about the date, claiming that he and Kardashian weren’t in a rush. However, he pointed out that lately, investors have expressed interest in companies that cater to consumers.
And going public is still one of the objectives of the business. “Skims deserves to be a public company at some point in the future,” he remarked.
