Skims raises $225 million in funding, reaches $5 billion valuation

Skims said Wednesday it has raised $225 million in new financing, bringing the lingerie and apparel company’s value to $5 billion.

Founded in 2019 by Kim Kardashian and her business partner Jens Grede, Skims plans to use the new funding to drive product innovation and expand into new categories, according to an announcement from Goldman Sachs.

“Today’s announcement validates the hard work of our amazing team and partners who have helped us reach this exciting new chapter, becoming a global omnichannel retail brand,” Kim Kardashian, co-founder and CEO of Skims, said in a statement. “We can’t wait to take SKIMS to the next level as we continue to innovate and set the standard for our industry.”

The financing round was led by Goldman Sachs Alternatives, with participation from funds affiliated with BDT and MSD Partners, as stated in the announcement.

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Skims said it is on track to surpass $1 billion in net sales this year and is “laying the groundwork to be a predominantly physical company over the next few years,” as stated in the announcement.

“SKIMS stands as a solutions-based apparel innovator, pioneering new categories and redefining everyday apparel,” Pete Capellavita, global head of hybrid capital at Goldman Sachs Alternatives, said in a statement. “We look forward to partnering with management to pursue significant opportunities and deliver sustainable, disruptive growth.”

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Skims pop-up store at the Nordstrom flagship store in New York, on June 9, 2024. (Ping Guan/Bloomberg via Getty Images/Getty Images)

The company currently operates 18 stores in the United States, including in New York, Los Angeles, Houston and Las Vegas, as well as two franchise locations in Mexico.

The brand, known for its inclusive size and minimalist aesthetic, has gained a strong following among young shoppers, boosted by Kardashian’s influence on social media, according to Reuters.

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Earlier this year, Skims announced that it had partnered with Nike to launch a new women-focused brand called NikeSKIMS. (Nike)

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Earlier this year, Skims announced that it had partnered with Nike to launch a new women-focused brand called NikeSKIMS.

“SKIMS’s recent launch of the NikeSKIMS brand, in partnership with Nike Inc., exemplifies the company’s commitment to pushing boundaries and delivering industry-leading innovations,” the announcement states.

Skims did not immediately respond to FOX Business’ request for comment.