Investment firm Wellington Management is in talks to lead a new funding round for Reality TV star-turned-entrepreneur Kim Kardashian’s Skims, which could value the underwear clothing company at about $4 billion valuation, according to people familiar with the matter.
Wellington Skims investors
Reality TV star-turned-entrepreneur Kim Kardashian has launched another fundraising round for her shapewear brand Skims valuation. Kim Kardashian Skims aims to value the company at close to $4 billion in anticipation of a possible initial public offering (IPO), according to a report.
The discussion by the brand for Wellington’s Skims investment could make a significant commitment to fast growing business in what could be its last fundraising as it gears up an initial public offering that could happen within a year, sources said, requesting anonymity because the matter is confidential.
The company, which has branched out from its bodysuits catalog to items such as pajamas and bathing suits, initially hoped to hit net sales of around $750 million this year.
Co-founded by the 42-year-old Kim Kardashian Skims has gained popularity over the past 4 years, along with her business partner, Jens Grede.
Kim’s net worth was pegged by Forbes at $1.2 billion.
Kardashian’s ex, Kanye West, holds a 5% stake in Skims. Though “Keeping Up With The Kardashians” star is Skim’s largest individual shareholder.
Skims has retail presence in department stores such as Nordstrom and Saks Fifth Avenue.
It also opened temporary pop-up locations in Rockefeller Center as well as in department stores in London.
Skims and Wellington (supposed Skims investors) did not respond to comment requests. Women’s Wear Daily reported on the Skims funding round earlier on Wednesday without naming Wellington.
Skims launched in 2019 and sells bras, loungewear and shapewear directly to customers through its online store and at outlets owned by department store chains.
Other Skims investors
Sources said Skims raked in $500 million in revenue in 2022, and is profitable. The company raised $240 million last year at a $3.2 billion valuation lead by
- Hedge fund Lone Pine Capital.
- D1 Capital Partners.
- Thrive Capital.
- Imaginary Ventures.
- Alliance Consumer Growth.
Kim’s other businesses
- Her business portfolio also includes a minority stake in KKW Beauty, which she sold for $200 million last year to Coty Inc. The Wall Street Journal reported on Tuesday that she is in talks to buy back the brand.
- Kardashian is also actively raising funds for her new private equity firm SKKY Partners, which focuses on consumer and media investments. She co-founded the firm last year with ex-Carlyle executive Jay Sammons.
Kim Kardashian Skims valuation
Kim Kardashian Skims is on track to register sales figures of around $1 billion this year, an increase of around 100% year-over-year, according to Women’s Wear Daily.
Skims valuation of $4 billion would make it more than twice as valuable as legacy retailer Victoria’s Secret, which saw sales drop 6% last year to $6.3 billion. Victoria’s Secret has a market capitalization of $1.6 billion.
Last month, Bloomberg News reported that Skims, which was originally founded as a direct-to-consumer business, was planning to open its first flagship retail location in Los Angeles sometime in the first half of next year.
A second store is being planned for New York.
All about Kim Kardashian’s Skims
Co-founded by Kim Kardashian, Emma Grede and Jens Grede, Skims is an American shapewear and clothing brand. Skims has a focus on body positivity and inclusivity across the brand and inclusive sizing. The company was valued at over $3.2 billion in January 2022. Kim Kardashian Skims is notable for its wide range of sizes that range from XXS to 5XL.
