Skims Doubles Valuation To $3.2B

Words by Retail Bum

Skims Doubles Valuation To $3.2B
Skims Doubles Valuation To $3.2B

Kim Kardashian’s shapewear brand, Skims, is now valued at $3.2 billion, following its latest $240 million investment round.

The funding was led by hedge fund Lone Pine Capital and supported by investment firm D1 Capital Partners. The round also saw participation from the brand’s existing investors, including Imaginary Ventures, Alliance Consumer Growth and Thrive Capital.

The latest investment round has doubled Skims’ valuation from $1.6 billion in April — a testament to the fact that investors are now hedging their bets on emerging brands that are well-positioned to capture market share.

“This latest round will allow us to focus on bringing more innovations and solutions to our customers and become even more of a trusted resource for them,” Kardashian said.

The company also plans to use the latest investment round, which brings the total raised funding to $402 million, to fuel its expansion plans and bolster balance sheets.

Kardashian and Skims CEO Jens Grede have retained a controlling stake in the company. The duo does not currently have any plans to sell their business and may consider filing for an initial public offering in the future.

The latest investment rounds follows two years of rapid growth since Skims’ launch in 2019. The company has expanded its offering from shapewear to a range of basic products, including pullovers, sleep robes and turtlenecks. Shapewear, in fact, now represents less than 20 percent of its overall sales, with underwear accounting for the bulk of its business.

The company increased its sales by 90% to nearly $275 million in 2020 and it expects its 2021 sales to reach $400 million.

“We see an opportunity with Skims to create our own category in retail, just like how we believe Lululemon and Starbucks created their own categories in their respective areas,” said Grede. “That’s really why we’re doing this, to make sure we’re best prepared for the future.”

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