This is Kim Kardashian's world, and we're just living in it. If we needed any further proof of that, it's estimated that her A-list brand Skims is now worth more than $3.2 billion.
Kim Kardashian has been in the limelight for over a decade now, and it seems like her presence just grows bigger and bigger every year. In April 2021, we found out that Kim is officially a billionaire. Now the latest news is that Skims, her popular shapewear and underwear brand, has skyrocketed—and the net worth has doubled to a whopping $3.2 billion.
The Origins of Skims
In 2019, Kim launched what we now know as Skims. The original release of her shapewear didn't go so well, though. She had plans to name the brand Kimono, but the name was met with so much backlash that she decided to rebrand and change to the name Skims. “My intention wasn’t ever to offend anybody. Foolishly and ignorantly, we never thought that it would be a problem,” Kim said in an episode of Keeping Up with the Kardashians.
Skims kicked off by offering shapewear, but the brand soon expanded to underwear, bodysuits, loungewear, etc. In fact, shapewear now only makes up 20% of their sales. The brand gained momentum during the coronavirus pandemic in 2020, when millions of women around the country were opting in for comfortable at-home wear.
Skims' Exponential Growth
In April 2021, Skims was valued at $1.6 billion, and throughout last year Skims grew its sales by 90% to $275 million. This number is expected to reach $400 million this year. The last round of financing, led by hedge fund Lone Pine Capital and investment firm D1 Capital Partners, brought in $240 million.
Kim's business partner and Skims Chief Executive Officer Jens Grede told Bloomberg that there are no plans to sell the business anytime soon. “We see an opportunity with Skims to create our own category in retail, just like how we believe Lululemon and Starbucks created their own categories in their respective areas,” she said. “That’s really why we’re doing this, to make sure we’re best prepared for the future.”
What's Next for Skims
Skims is just getting started. Kim is building more infrastructure to deliver her products internationally. There's talk of bringing Skims to popular department stores around the world, including in the U.K., Australia, and the Middle East.
The brand will also make an appearance in the Winter Olympics in Beijing next month; Team USA athletes will don Skims loungewear and underwear, just like they did in the Summer Olympics in Tokyo. “We are continuously working on collaborations, partnerships and events,” Grede added. “More to come.”
For a woman who people like to label as untalented, Kim sure has proven them wrong and built an empire that seems to be growing larger and larger by the minute.