Kim Kardashian’s Skims Is Now Worth $4 Billion After New Funding Round

Kim Kardashian’s underwear label Skims has raised new funding, valuing the company at $4 billion (€3.57 billion).

The $270 million (€241.3 million) funding round was led by Wellington Management Group and backed by Greenoaks Capital Partners, Skims said in a statement on Wednesday. The clothing maker has raised a total of $670 million (€598.8 million) from D1 Capital Partners and Imaginary Ventures, among other investors.

Management said it plans to use the funds to develop new products, enter new categories and open directly owned company stores. Skims is expected to have net sales of more than $750 million (€684.6 million) this year, according to chief executive officer Jens Grede. Instead it was capped at $500 million (456.4 million euros) in 2022.

Even then new York Times We previously reported on this funding round.

Grede said in an interview in June that Skims plans to aggressively expand its retail network, with the first permanent store opening in Los Angeles in the first half of next year, followed by a second in New York. The approximately 450-square-foot boutique will be located on Sunset Boulevard in West Hollywood, near streetwear stores like Supreme and Kith.

Grede said, “Kim and I can envision a future where many years from now there will be a Skims store anywhere in the world where you can find an Apple store or a Nike store.”

Skims debuted as a direct-to-consumer company in 2019, but has since moved into physical retail through partnerships with department stores like Nordstrom and Saks Fifth Avenue. In recent months, Skims has opened pop-up stores in iconic locations such as Selfridges department store in London and Rockefeller Center in New York.

The executives want to open at least four stores next year and accelerate brand expansion once the stores are operational. Management plans to open stores in national markets that attract regional tourism, including Dallas, Atlanta and Miami.

The company plans to open flagship stores overseas after conducting trials in cities including Paris and Hong Kong. In its online shop, 20% of Skim’s customers come from abroad.

Product development drove the brand’s growth as Skims expanded its initial shapewear line into categories such as sleepwear and swimwear. Underwear is now a big part of its business, and the company plans to launch a men’s clothing line in October.

Kim Kardashian and Jens Grede want Skims to go public one day, but the CEO says there are no short- or medium-term plans to enter the stock market. The company had appointed a chief financial officer last year.

“Skims deserves to become a publicly traded company – when the time is right,” said Jens Grede.

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