Kim Kardashian’s apparel brand Skims could soon be worth nearly $4 billion.
The company is in the middle of a funding round that could help it reach that valuation ahead of an initial public offering (IPO) in the next six to 12 months, Women’s Wear Daily reported Wednesday (July 12).
Skims is believed to be on pace to generate sales of almost $1 billion this year with a growth rate of around 100 % — without any permanent retail base, according to the report. In comparison, Victoria’s Secret, with a market cap of $1.6 billion, saw its sales dip 6% last year.
PYMNTS has reached out to Skims for comment but has not yet received a reply.
Skims, which specializes in underwear, loungewear and shapewear, is preparing to move from an online, direct-to-consumer (D2C) model to permanent brick-and-mortar stores, part of an expansion into both domestic and international retail markets.
“Kim and I can envision a future where years from today there’s a Skims store anywhere in the world you’d find an Apple store or a Nike store,” said Skims Co-founder and CEO Jens Grede in June. “It marks the second chapter.”
The news comes soon after reports that Kardashian was attempting to buy back the 20% of her beauty business that she sold to Coty in 2021 to expand the range of beauty product categories offered by the business, now valued at $1 billion and called “SKKN by Kim.”
Skims debuted as a D2C venture in 2019 but has since expanded its physical retail by working with department stores like Nordstrom and Saks Fifth Avenue. The company has also embraced temporary shop-in-shop concepts at locations like Selfridges in London and Rockefeller Center in New York.
Earlier this week, PYMNTS noted that many D2C brands have been able to control the entire customer experience, from product development to marketing and sales.
“However, as the landscape continues to shift, brands are embracing wholesale opportunities to connect with a wider range of consumers and meet them where they prefer to shop,” the report said. “By partnering with retailers, brands can leverage established infrastructure and gain exposure in physical stores or through online platforms with wider audiences.”
Some notable partnerships include Lululemon’s collaboration with German online fashion retailer Zalando this month and Adore Me’s team-up with Walmart to expand its D2C lingerie brand in May.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More