Skims is now worth more than some of the world's largest undergarment, athleisure, and beauty companies.
Kim Kardashian's company has raised a new round of financing — $225 million — at a valuation of $5 billion, the company confirmed to Business Insider.
That means the brand, which started as a shapewear line and has since expanded into activewear through a partnership with Nike, is now larger than its competitors, Victoria's Secret and Under Armour, combined. Victoria's Secret has a market capitalization of $2.86 billion, and Under Armor is worth $1.98 billion.
Skims plans to use the new funds to expand its physical presence — currently, it has 18 stores in the US — and diversify into new categories, including beauty.
Earlier this year, Skims acquired Kardashian's beauty brand SKKN by Kim from the founder and Coty. This month, the company made headlines by hiring Diarrha N'Diaye, formerly the founder of viral beauty line Ami Colé, to run the newly branded Skims Beauty.
Skims, which launched in 2019, initially focused on shapewear and intimates. It quickly gained popularity, reaching $145 million in sales during its first full year in business. Growth has been steady, and this year, the company said net sales are expected to reach $1 billion.
The most recent fundraising round, which was led by Goldman Sachs Alternatives with participation from BDT & MSD Partners, increased Skims' valuation by $1 billion since its last fundraising round in 2023.
The company is the most highly valued celebrity brand ever. Headphone brand Beats by Dre previously held that title; the music mogul sold his company to Apple for $3.2 billion in 2014.
