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Skims Secures $225 Million as Valuation Soars to $5 Billion

Kim Kardashian’s fashion powerhouse, Skims, has officially reached a $5 billion valuation after closing a $225 million funding round led by Goldman Sachs Alternatives, with participation from BDT & MSD Partners. This latest raise marks a significant milestone for the six-year-old brand, which has quickly evolved from a digital-first shapewear startup into one of the fastest-growing apparel companies in the United States.

The company’s valuation jumped from approximately $4 billion in 2023, underscoring investor confidence in Skims’ strong growth trajectory. According to insiders, Skims is on track to surpass $1 billion in annual net sales, a remarkable achievement for a brand that launched in 2019 and initially operated purely online.

A Strategic Pivot Toward Physical Retail

With its latest funding, Skims plans to accelerate the expansion of its brick-and-mortar stores and expand internationally. Currently, the company operates 18 retail locations across major U.S. cities such as New York, Los Angeles, Austin, and Atlanta, along with a newly opened flagship in Mexico City.

By 2026, Skims intends to open multiple locations in Europe, the Middle East, and Asia, marking its first large-scale global retail push. The company’s leadership says the goal is to transition into a “predominantly physical business”, positioning Skims alongside industry heavyweights like Lululemon, Nike, and Alo Yoga.

“This milestone reflects continued confidence in our long-term vision,” said Jens Grede, Skims’ CEO and co-founder. “With disciplined execution, we’re positioned to unlock the next phase of growth and make Skims a global lifestyle brand.”

Innovation and Partnerships Drive Growth

The new capital comes on the heels of Skims’ widely successful NikeSkims collaboration, which debuted earlier this year and sold out within hours. The partnership marked Skims’ entrance into the athleticwear and performance apparel market, a category that generates more than $360 billion annually worldwide.

The collaboration with Nike not only boosted brand visibility but also signaled Skims’ intent to challenge industry giants through innovative design and inclusive sizing. Industry analysts suggest the company could easily capture 3–5% of the global activewear segment over the next few years if it maintains its current growth pace.

IPO Plans on Hold—for Now

While an initial public offering (IPO) for Skims has been rumored since 2024, the new funding round may delay those plans. The consumer IPO market has remained tepid throughout 2024 and 2025, with many investors cautious about retail and discretionary spending sectors.

By securing additional private capital, Skims gains more flexibility to expand aggressively without the short-term scrutiny of public markets. “This capital allows us to continue scaling on our terms,” said Grede in a recent statement.

Goldman Sachs and Investor Confidence

Goldman Sachs’ investment reflects strong institutional confidence in Skims’ business model. Beat Cabiallavetta, Global Head of Hybrid Capital at Goldman Sachs Alternatives, praised the brand’s trajectory:
“Skims is redefining modern apparel. Its solutions-based innovation and cultural impact make it one of the most compelling growth stories in consumer retail today.”

Financial analysts estimate that with its current momentum, Skims could reach a $7–8 billion valuation within two years if international expansion and category diversification continue at the current rate.

The Skims Effect: A Modern Apparel Revolution

Since its inception, Skims has distinguished itself with inclusive sizing (XXS to 5X), neutral color palettes, and celebrity-driven campaigns featuring stars like Usher, Ice Spice, and Sabrina Carpenter. The brand’s focus on body positivity, comfort, and accessibility has helped it build a cult-like global following.

Kim Kardashian, who serves as Chief Creative Officer, called the funding a defining moment for the company. “We’re entering an exciting new chapter,” she said. “This investment fuels our mission to innovate and set new standards in the apparel industry.”

The Road Ahead

Looking forward, Skims plans to diversify beyond shapewear and loungewear into menswear, activewear, and adaptive clothing, tapping into markets worth a combined $500 billion globally. Analysts expect Skims’ international stores and product expansion to significantly boost annual revenue over the next 24 months.

From viral campaigns to retail dominance, Skims is evolving from a celebrity-led startup into a powerhouse fashion brand shaping the future of comfort and confidence wear. With $5 billion in valuation and global ambitions on the horizon, the company’s next move could redefine what it means to be a modern American fashion empire.