The Rise of SKIMS: From Niche to Mainstream
In November 2025, SKIMS BODY, Inc. announced the successful completion of a $225 million equity financing round, valuing the company at $5 billion.
Launched in 2019 by Kim Kardashian, Emma Grede and Jens Grede, SKIMS began as a direct-to-consumer shapewear label focused on inclusive sizing. What followed has been a rapid transformation into a broader lifestyle and apparel brand with global ambitions.
How SKIMS reached this valuation, what it signals for the fashion industry, and the challenges ahead.
1.1 Founding and Early Proposition
SKIMS (formerly Kimono Intimates) was founded to fill a gap in the intimates market: inclusive sizing, realistic marketing, and neutral tones.
The brand quickly expanded beyond shapewear into loungewear, men’s underwear, activewear (notably with its collaboration with Nike) and global retail. Vogue+1
By late 2025 SKIMS operated 18 US-owned stores and two franchises in Mexico, with plans for major international growth. Goldman Sachs Asset Management+1
2. The $225 Million Funding Round and $5 Billion Valuation
On 12 November 2025, SKIMS announced it had secured new funding led by Goldman Sachs Alternatives and backed by BDT & MSD Partners. The result: a valuation of $5 billion. Reuters+1
The funding is earmarked for:
Accelerated physical retail expansion
International market entry
Product innovation and category diversification
3. What Fuels the Valuation and What Could Threaten It
3.1 Drivers of the Valuation
Strong projected sales: SKIMS expects to exceed $1 billion in net sales during 2025. Retail Gazette+1
Consumer momentum: The brand’s inclusive sizing, celebrity ecosystem and social media reach drive demand and brand equity.
Strategic partnerships: NikeSKIMS and international retail deployment create new moats.
3.2 Principal Risks
The valuation is forward-looking, built more on potential than long-term profitability. The Business of Fashion
Category saturation: Activewear and intimates are crowded markets with strong incumbents (e.g., Lululemon, Victoria's Secret).
Shift from digital to physical: As SKIMS moves toward retail-first operations, attribution, logistics and margin structures may change materially. - Affiverse
4. What This Means for Celebrity-Driven and DTC Brands
SKIMS’s journey offers several lessons:
Celebrity branding can open doors, but long-term scale requires operational rigor and category depth.
Digital-native brands shifting to physical stores reflect a maturing DTC landscape: omnichannel matters.
Inclusive sizing and representation are not just ethics—they’re strategic differentiators in 2025.
Valuations of this magnitude raise expectations: execution across global retail, category expansion and profitability will determine whether the narrative sustains.
5. What Comes Next for SKIMS
Global Flagships & Retail Deployment: Plans for UK, Middle East and Asia expansions are underway.
Category Diversification: Beauty, fragrance and activewear will be key frontiers.
Operational Maturity: Infrastructure investment, supply chain scalability and retail operations will determine the next phase.
Brand Identity Evolution: SKIMS will need to evolve beyond its celebrity roots to maintain authenticity and resilience.
The $5-billion valuation for SKIMS is more than a milestone, it’s a capital vote of confidence in a brand that has redefined how intimate apparel, celebrity influence and consumer culture intersect.
But with that valuation comes a new set of challenges: scaling globally, maintaining brand identity, defending against competitors and proving that the momentum isn’t just hype, but sustainable business.
For the fashion industry, SKIMS stands as both case study and cautionary tale one that shows how fast modern apparel brands can scale, and how quickly expectations can shift.
