Kim Kardashian's Skims is soaring to new heights! The brand just secured a whopping $225 million in funding, led by Goldman Sachs Alternatives, skyrocketing its valuation to $5 billion. But here's where it gets controversial—this success comes amidst a stagnant IPO market for consumer brands.
The funding news arrives as Skims, the shapewear and apparel company, approaches $1 billion in annual net sales, just six years after its 2019 launch. This latest funding round marks one of the largest private raises for a U.S. consumer brand in 2025. BDT & MSD Partners' affiliated funds also participated, demonstrating confidence in Skims' future.
Skims is not just sitting on this success; they're using the capital to fuel their expansion. The company plans to accelerate its physical store presence both domestically and internationally, a strategic shift for a brand that initially thrived as an online direct-to-consumer retailer. With 18 stores across the U.S. and one in Mexico, Skims is gearing up to open more international locations in 2026.
But that's not all. Skims is also diversifying its product offerings. The recent collaboration with Nike, NikeSkims, sold out within hours, indicating a promising future in activewear and performance apparel. This move challenges established brands like Lululemon and Nike in the athleticwear market.
The substantial funding might delay Skims' IPO plans, which have been in the works since 2024. The cautious investor sentiment towards consumer IPOs in recent years has made private funding a more attractive option. By raising private capital, Skims can focus on growth without the immediate pressure of going public.
Beat Cabiallavetta, a Goldman Sachs executive, praised Skims' innovative approach and inclusive sizing, which have cultivated a devoted fan base. Kim Kardashian, the brand's chief creative officer, echoed this sentiment, expressing excitement for the brand's future.
And this is the part most people miss—Skims' success isn't just about numbers. It's about challenging industry norms, pushing boundaries, and creating a community. Will Skims continue to disrupt the market and shape the future of fashion? The answer seems to be a resounding yes, but we'd love to hear your thoughts. What do you think about Skims' rapid rise and its potential impact on the industry?
