Kim Kardashian’s Skims Reaches New Heights, Propelling Her Wealth to $1.9 Billion
Kim Kardashian’s entrepreneurial journey has reached a remarkable milestone as her apparel company Skims announced a fresh $225 million funding round, valuing the business at an impressive $5 billion. This significant development has added $200 million to Kardashian’s personal wealth, bringing her net worth to an estimated $1.9 billion according to Forbes. The latest funding round, led by Goldman Sachs Alternatives with participation from billionaire Byron Trott’s BDT & MSD Partners, represents a substantial increase from the company’s previous valuation of $4 billion in 2023. It’s a testament to Kardashian’s business acumen and the brand’s remarkable growth trajectory since its launch just five years ago.
What started as a shapewear-focused online direct-to-consumer brand in 2019, founded by Kardashian alongside business partners Jens and Emma Grede, has evolved into a diverse apparel empire. Skims now offers an extensive range of products beyond its initial shapewear focus, including t-shirts, pajamas, jackets, and men’s hoodies. The company has also made significant strides in establishing a physical retail presence, operating 20 stores across the United States and Mexico. This brick-and-mortar expansion represents a strategic pivot for the brand, which now aspires to become a “predominantly physical business” in the coming years. The newly secured investment will fuel this ambition, enabling Skims to open additional stores and develop new product lines to serve its growing customer base.
The company’s growth strategy includes notable collaborations and product diversification efforts. In February, Skims partnered with Nike to launch NikeSkims, an activewear collection designed specifically for women, with a second line featuring socks, waist packs, and training gloves debuting shortly after the funding announcement. As chief creative officer, Kardashian maintains a hands-on approach to the business, stating on The Graham Norton Show, “I do everything from all the design to pick out all the campaigns. That’s my daily job.” This level of involvement highlights her commitment to the brand beyond merely lending her name and influence, contributing to Skims’ authentic appeal and commercial success.
Beyond apparel, Skims is making strategic moves in the beauty sector. In March, the company acquired French beauty giant Coty’s 20% stake in SKKN by Kim, Kardashian’s skincare line, for an undisclosed amount. While Coty had initially invested $200 million for this stake in 2021, the business—which itself was a 2022 reinvention of Kardashian’s earlier KKW Beauty line—was ultimately shuttered in June. Despite this setback, Skims appears determined to establish a strong presence in beauty and fragrance. The recent hiring of Diarrha N’Diaye, founder of beauty company Ami Colé, to lead these efforts signals Kardashian’s continued ambition to expand her business empire beyond apparel, leveraging her existing brand recognition and consumer trust.
The financial implications of Skims’ success are substantial for all stakeholders. Kardashian, who owns just under one-third of the company following the latest funding round, has seen the vast majority of her $1.9 billion fortune derive from this business venture, rather than from her family’s television enterprises like “Keeping Up With The Kardashians” and “The Kardashians.” Similarly, the Gredes, who together own approximately 14% of Skims, have added an estimated $150 million to their wealth through this latest valuation increase. The company’s financial performance supports these valuations, with Skims projecting $1 billion in net sales for the current year, a significant increase from the $750 million reported during its previous capital raise.
“This milestone reflects continued confidence in our long-term vision and, coupled with disciplined execution, positions Skims to unlock its next phase of growth,” said CEO Jens Grede in the funding announcement. Kardashian echoed this forward-looking sentiment, stating, “We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry.” This combination of vision, execution, and innovation has transformed what might have been dismissed as another celebrity-branded product line into a legitimate business success story. Beyond her entertainment career and social media influence, Kardashian has established herself as a formidable entrepreneur, building a billion-dollar business while simultaneously pursuing other professional goals, including her studies to pass the bar exam. The Skims story represents not just personal financial success for its founders but also demonstrates how celebrity influence can be effectively channeled into sustainable business ventures when backed by genuine involvement, strategic partnerships, and responsive product development.
