Advertisement
Advertisement
Advertisement

How did Kim Kardashian’s Skims shapewear line get valued at US$1 billion? The brand introduced loungewear before Covid-19 hit and demand for WFH-friendly outfits spiked

Kim Kardashian’s Skims brand is now worth over US$1 billion. Photo: @kimkardashian/Instagram

Kim Kardashian’s shapewear company has joined the unicorn club. 

The two-year-old brand, called Skims, has raised US$154 million in new funding from Josh Kushner’s Thrive Capital as well as from existing investors Imaginary Ventures and Alliance Consumer Growth. The new round pushes Skims’ valuation to US$1.6 billion, Kardashian told The New York Times.

We’ve come a long way – Kim Kardashian celebrates the launch of Skims at Nordstrom NYC in February 2020 in New York City. Photo: Getty Images for Nordstrom

Kardashian is Skims’ biggest shareholder and controls a majority stake along with her business partner, Jens Grede, The Times reports.

Skims’ billion-dollar valuation comes after a year when shoppers were less in need of shapewear and more in need of loungewear. But Skims had started introducing more laid-back apparel just as the pandemic hit in early 2020, inspired by Kardashian’s preference for being comfortable when she’s in her house, she recently told Vogue.

 
“The pandemic hit at like, our first or second drop of loungewear, and we had loungewear designed for the whole next year to drop,” she said. “And it just happened to be the perfect time and the perfect storm of everyone staying home and wanting to just be a lot more comfortable.” 

But Kardashian told The Times that shapewear is still at the core of Skims’ business, describing the company as “your basics go-to”. The company offers bras, underwear, bodysuits, shorts, slips and even pregnancy support in a range of sizes (from XXS to 5X) and shades: many of the shapewear items come in eight different flesh tones as well as black. 

Despite challenges posed by the pandemic – like sourcing materials – Skims reported US$145 million in sales in 2020, which it expects to double in 2021, according to The Times.

Kim Kardashian. Photo: @kimkardashian/Instagram
Skims’ new valuation follows Kardashian’s official debut as a billionaire. Earlier this week, she appeared on Forbes’ billionaires list for the first time, spurred by the success of Skims as well as her make-up line, KKW Beauty. Kardashian sold a 20 per cent stake in KKW Beauty to make-up giant Coty in June 2020 in a deal that valued the brand at US$1 billion. 
Kardashian also earns income from her family’s reality show, Keeping Up with the Kardashians, which is on its final season, as well as endorsement deals, real estate holdings, business ventures like a now-defunct mobile app, and a portfolio of stocks that includes Disney, Amazon and Netflix, according to Forbes.

Want more stories like this? Sign up here. Follow STYLE on FacebookInstagramYouTube and Twitter.

This article originally appeared on Business Insider

  • After a new US$154 million round of funding from Josh Kushner’s Thrive Capital and existing investors, the two-year-old brand has joined the unicorn club
  • Kanye West’s ex and a newly minted billionaire, Kim K also makes bank from reality show Keeping Up with the Kardashians and stocks in Netflix, Amazon and Disney