Bigger than a KUWTK premiere… Kim Kardashian’s Skims brand hit a $4B valuation after announcing a fresh $270M in funding yesterday. Skims debuted in 2019 as a direct-to-consumer shapewear brand, launching its merch in several skin tones and sizes (think: XXS to 6X). Last year Skims scored a $3.2B valuation as it expanded into new categories — from PJs and swimwear to $40 crop tops (a men’s line is coming this fall).
Tight returns: Skims’ CEO says the biz is now profitable and expects to rake in $750M in sales this year, 50% more than in 2022.
New shelf: The shapewear star plans to use its fresh funding to build brick-and-mortar stores and open its first flagship locations in NYC and LA next year.
Ice Spice approved… Celeb-backed businesses like Skims and Rihanna’s Savage X Fenty have breathed new life into bodywear as the pandemic comfort trend stays hot. Both brands have leveraged viral social campaigns, limited product drops, and strong reviews to build hype. It’s paying off: 11M+ people have been on Skims’ wait lists in the past year, with most items selling out in minutes. Savage X Fenty is said to be worth $3B, and could be going public soon. Lizzo's shapewear brand, Yitty, expects to make $100M this year after launching in April ’22.
Brands can redefine categories… Shapewear has been around since the days of corsets, but Skims shook up the industry with a modern makeover. By moving beyond the "slimming is better" mindset and embracing different styles, Skims extended the trend and set a new standard. It’s having a halo effect: two years after Skims launched, OG shapewear biz Spanx became a billion-dollar brand for the first time in over a decade.