With Skims having raised $270 million in a recent funding round, the company is now valued at $4 billion. Investors valued the company at $3.2 billion just last year.
It’s only been four years since Kim Kardashian and business partner Jens Grede brought Skims into the world. The plan has always been to make the company the next big brand.
“It has grown quickly, and we’re so proud of that. We’ve had a really good flow of product launches,” Kardashian told The New York Times.
Skims exclusively sold shapewear to its customers at first but has ventured out into a wide variety of apparel like swimsuits and loungewear. They have plans to sell men’s clothing come fall.
The company also plans on opening physical stores in Los Angeles and New York City sometime next year.
Skims has been turning a profit since it launched in 2019, but according to its Chief Executive Jens Grede, Skims has become profitable only now.
While a majority of its sales, about 70% come from millennials or Gen-Z, only 15% of its sales come from items purchased outside of the U.S., 11 million people have joined waitlists to buy Skim’s most popular items over the last year, Grede said.
What drew investors to Skims recently was its growth trajectory and popularity, said Grede. Wellington Management led the latest funding efforts, but other participating firms include Greenoaks Capital Partners. The existing backers are D1 Capital Partners and Imaginary Ventures.