Post by : Meena Ariff

Founded by celebrity Kim Kardashian, the shapewear label Skims has successfully achieved a $5 billion (£2.93bn) valuation following a recent $225 million funding injection. This investment round, featuring participation from Goldman Sachs, marks one of the year's most significant capital raises for a consumer brand in the U.S.

The brand intends to utilize this newfound capital to broaden its international reach and establish more physical retail locations, emphasizing the growth of its traditional store presence in the years ahead.

"We're excited to elevate Skims as we continue to drive innovation and set industry benchmarks," Kardashian expressed on Wednesday.

Launched in 2019 with an initial shapewear collection, Skims has subsequently diversified into loungewear and other fashion segments. Currently, the brand boasts 18 locations across the U.S. while distributing products globally with retail partners.

Forecasts show that sales could surpass $1 billion this year, a target that CEO Jens Grede believes boosts the company’s ability to implement comprehensive growth plans.

Skims has made inroads into the competitive sports and athleisure segment, previously dominated by brands like Lululemon and Alo Yoga. The company leverages a wide network of influencers, including the Kardashians, Megan Fox, and Paris Hilton, to enhance its market presence.

Since its inception, Skims has encountered some controversies. Initially named Kimono Intimates, it faced backlash for cultural insensitivity and later underwent rebranding. Additionally, certain innovations, such as a facial contouring head wrap, sparked mixed reactions, receiving both admiration for creativity and critiques for perpetuating unrealistic beauty ideals.

This funding positions Skims for a global growth trajectory, boosting its retail presence while advancing innovation in the fashion and shapewear markets as it competes with established brands.

#Global News #fashion