Kim Kardashian’s Skims, the shapewear and loungewear brand she co-founded in 2019, has reached a new milestone: a $5 billion valuation following a $225 million funding round led by Goldman Sachs. The deal, one of the largest in the consumer apparel sector this year, signals both investor confidence in celebrity-driven brands and the growing influence of direct-to-consumer (DTC) businesses in the fashion industry.
“We’re thrilled to partner with investors who understand our vision for Skims and our commitment to inclusive, high-quality products,” Kardashian said in a statement. “This funding allows us to continue innovating and expanding globally.”
The Funding Round and Key Investors
The $225 million funding round drew participation from both traditional financial institutions and strategic investors in the fashion and technology sectors. Goldman Sachs took the lead, joined by General Atlantic, Casdin Capital, and others, reflecting the brand’s strong appeal across multiple investment audiences.
The capital injection will be used to expand product lines, scale international operations, and accelerate Skims’ digital and retail presence. Analysts expect a significant portion to be invested in technology-driven customer experiences, including AI-assisted sizing tools and immersive e-commerce platforms.
“Skims represents a new category of consumer business — one that blends product, celebrity influence, and direct-to-consumer technology,” said a Goldman Sachs private equity partner. “It’s exactly the type of high-growth brand we want to support.”
From Loungewear to Global Lifestyle Brand
Skims began with a focus on shapewear designed to be both functional and fashionable, quickly capturing the attention of consumers frustrated by limited size inclusivity in the market. Its early success was fueled by:
- Inclusive sizing, ranging from XXS to 5X,
- A strong social media strategy led by Kardashian herself,
- Limited-edition drops that create urgency and buzz,
- Celebrity endorsements and collaborations that amplify brand visibility.
Over the past four years, Skims has expanded into loungewear, intimates, sleepwear, and even hosiery, positioning itself as a lifestyle brand rather than a single-product company. The brand’s revenue is estimated to exceed $500 million annually, making it one of the fastest-growing DTC fashion companies globally.
Celebrity-Driven Brands Are Reshaping Consumer Investment
Skims’ valuation highlights the increasing power of celebrity influence in building scalable businesses. Unlike traditional fashion brands that rely on wholesale and retail networks, celebrity-led DTC brands benefit from built-in audiences and social media amplification.
Kardashian, who has a following of over 400 million across Instagram, Twitter, and TikTok, exemplifies the model where personal brand and corporate brand are intertwined. Investors are betting that this type of brand loyalty translates into sustained revenue growth and defensible market positioning.
“Skims is a case study in how modern consumer finance values brand equity, data, and social reach just as much as traditional financial metrics,” said a retail analyst at CB Insights.
Global Expansion Plans
The $225 million funding round is expected to accelerate Skims’ international ambitions, particularly in Europe, the Middle East, and Asia. The company has already established a strong online presence in markets like the UK and Australia, and the capital will allow:
- Opening physical retail stores in key urban centers,
- Enhancing e-commerce logistics and fulfillment capabilities,
- Launching region-specific marketing campaigns,
- Expanding localized product lines tailored to regional tastes.
Industry insiders believe that international expansion will be critical to justify the $5 billion valuation, as North American markets are approaching saturation for high-end loungewear and shapewear.
The Broader Direct-to-Consumer Trend
Skims’ meteoric rise comes amid a broader boom in DTC brands, which bypass traditional retail intermediaries to build direct relationships with consumers. This approach provides several advantages:
- Higher margins by avoiding wholesale discounts,
- Data-driven product development using first-party customer insights,
- Rapid feedback loops for inventory and design adjustments,
- Ability to leverage digital marketing effectively for brand storytelling.
Other celebrity-backed brands, such as Rihanna’s Fenty Beauty and Kylie Cosmetics, have followed similar paths, attracting large-scale private equity and venture capital investments.
“Investors are recognizing that DTC brands with strong founder credibility, data intelligence, and cultural relevance are capable of generating long-term value beyond traditional retail metrics,” notes a private equity strategist.
Challenges Ahead
Despite the funding and strong valuation, Skims faces challenges typical of high-growth consumer brands:
- Scaling supply chains to meet global demand without compromising quality,
- Maintaining brand relevance as competitors enter the market,
- Navigating retail fatigue as consumer attention shifts rapidly online,
- Sustainability expectations, as global consumers increasingly scrutinize manufacturing practices.
Kardashian and her executive team will need to balance rapid growth with operational discipline, especially as investor expectations for profitability rise alongside valuation.
Looking Forward: Skims as a Global Fashion Powerhouse
With $225 million in fresh capital and a $5 billion valuation, Skims is no longer just a celebrity-adjacent fashion label. It is emerging as a full-fledged global lifestyle and fashion brand, poised to compete with legacy players and newer DTC entrants alike.
Investors and analysts see the deal as validation of a new model of celebrity-led entrepreneurship — one that blends social media influence, consumer insights, and financial discipline to achieve rapid scale.
“Skims proves that in the digital era, culture, data, and brand narrative can drive billions in value,” says a retail analyst. “It’s a sign of how modern consumer finance is evolving.”
As the brand expands internationally and diversifies its product offerings, all eyes will be on whether Skims can maintain its cultural relevance while delivering sustained financial performance — a challenge that will define the next phase of celebrity-driven commerce.
