Kim Kardashian’s Skims shapewear brand has become a major player in the apparel industry, with its latest fundraising round valuing the company at around $4 billion. Kardashian, who remains the majority owner of the company, has set her sights on an initial public offering (IPO) and is looking to attract mutual funds and family offices to invest in the business.
The Skims brand has expanded its product range beyond bodysuits to include pajamas and bathing suits, and is on track to reach sales of $1 billion this year, according to Women’s Wear Daily, doubling its net sales target of $750 million. This impressive growth has helped increase the company’s valuation from $1.6 billion to $3.2 billion in just a year, with the latest fundraising round pushing it to the $4 billion mark.
Despite some concerns about recent IPOs, the potential IPO for Skims could provide the brand with a new platform and audience. The success of Skims’ fundraising efforts so far suggests that there is significant demand for the brand among investors. However, Kardashian’s Skims isn’t stopping at just shapewear – it recently launched a line of loungewear that includes hoodies, sweatpants, and robes. This move into more casual clothing could help Skims capture even more market share and expand its customer base.
Interestingly, Kardashian’s ex-husband Kanye West holds a 5% stake in the company. While this may not seem like a significant amount, it does mean that West stands to benefit from Skims’ success. With Kardashian’s wealth now estimated at over $1 billion, Skims’ success is just one more feather in her cap. In addition to her shapewear brand, Kardashian is reportedly in talks to regain full ownership of her beauty brand from Coty Inc.
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Interestingly, last year, Kardashian revealed in an interview with the New York Times that Skims’ true value is even higher than Forbes’ estimate. She stated that the shapewear line is worth $1.6 billion — a $1.1 billion difference to Forbes’ estimation of $500 million at the tim. This increase in valuation can be attributed to a $154 million influx in funding. Forbes still valued Kardashian’s net worth at $1 billion, but the New York Times suggested it is higher.
Skims experienced a surge in sales during the COVID-19 pandemic, with many people opting for comfortable and supportive loungewear while working from home. The company expects to generate $400 million in revenue in 2022. With this success, Kardashian has surpassed her younger sister Kylie as the richest of the Kardashian-Jenner siblings.
Despite her impressive net worth, Kardashian remains focused on growing her business empire and creating opportunities for herself and her family. She believes that all of her siblings and possibly their children will eventually achieve billionaire status.