Skims, the shapewear brand co-founded by celebrity and entrepreneur Kim Kardashian, says it is now valued at $5 billion (£2.93 billion) after raising $225 million in new funding.
The company plans to use the money from investors, including an arm of Wall Street banking giant Goldman Sachs, to open more shops and expand around the world.
“We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry,” Kardashian said on Wednesday.
The funding round is one of the biggest this year for a US consumer brand and comes as Skims faces fierce competition from rivals like Lululemon.
Skims, which operates 18 shops in the US and retails its products globally, will predominantly focus on its physical retail business over the next few years.
The company expects to achieve sales exceeding $1 billion this year, a target that boosted the firm's confidence to further its long-term goals.
Since its launch in 2019 with a line of shapewear, Skims has expanded its offerings to include loungewear and various fashion categories.
As the brand grows, it continues to delve deeper into the mainstream sports and athleisure market, which is largely led by brands like Lululemon and Alo Yoga. Skims has also built a strong group of influencers, including members of the Kardashian family and other celebrities such as Megan Fox and Paris Hilton.
The company has faced controversies, including the initial naming of its product line as Kimono Intimates, which drew criticism for cultural insensitivity, leading to a rebranding to Skims. Additionally, one of its products—a head wrap designed for sleep—sparked debate online, with opinions split between innovative and dystopian approaches to beauty.
