Kim Kardashian’s underwear label Skims doubled its valuation to $3.2 billion from just nine months ago.
Investors chipped in a cool $240 million in a new round of financing. Kardashian said in an email,
This latest round will allow us to focus on bringing more innovations and solutions to our customers and become even more of a trusted resource for them.”
According to Bloomberg,
Since its debut in 2019, Skims has expanded from its original shapewear offering of bodysuits and boy shorts into loungewear like pajamas and sweatpants. It now sells a wide range of basics that include pullovers, sleep robes and turtlenecks. Shapewear now represents less than 20% of sales and underwear accounts for the majority of its business.
Skims gained momentum as a trend toward comfy clothes persisted amid the Covid-19 pandemic, with shoppers still gravitating to casual tops and soft pants after lockdowns lifted and workers returned to offices. In women’s underwear, the company is joined by a slew of startups trying to win over a new generation of shoppers, while legacy brands such as Victoria’s Secret struggle.
Kardashian’s brand boosted sales 90% to about $275 million last year and expects to hit $400 million in 2022. The deal brings total funding for the Culver City, California-based company to $402 million. Management will use the fresh capital to bolster the balance sheet and pump money into expansion plans.
The Kardashian family is now involved in several billion-dollar brands. Kim sold a minority stake in her cosmetics line KKW Beauty to Coty Inc. for $200 million last year in a deal that valued that business at $1 billion.
Kylie Jenner sold a majority stake of Kylie Cosmetics to Coty as well. That acquisition valued her business at $1.2 billion.
Skims was valued at $1.6 billion last April.