![](https://images.prismic.io/sacra/ZrooPUaF0TcGI3gL_skimslogo.png?auto=format,compress)
Revenue
$750.00M
2023
Valuation
$4.00B
2024
Growth Rate (y/y)
50%
2023
Funding
$670.00M
2024
Revenue
![None](https://images.prismic.io/sacra/ZrooskaF0TcGI3gT_SKIMS.png?auto=format,compress)
Sacra estimates SKIMS hit $750 million in revenue in 2023, up 50% year-over-year from $500 million in 2022. The company has experienced rapid growth since its first full year since its founding in 2020, when it generated roughly $145 million in revenue.
The company raised $270 million in funding in July 2023 at a $4 billion valuation, up from a $3.2 billion valuation in 2022.
While specific profitability figures are not public, SKIMS is reportedly profitable, with CEO Jens Grede announcing an estimated net profit of $190 million for 2023.
The company benefits from high gross margins typical of the apparel industry, likely in the 50-60% range. SKIMS' direct-to-consumer model and celebrity founder Kim Kardashian's marketing power contribute to lower customer acquisition costs compared to traditional retailers.
Product
![None](https://images.prismic.io/sacra/Zrovi0aF0TcGI3jH_skimsproduc.jpeg?auto=format,compress)
SKIMS was founded in 2019 by Kim Kardashian and Jens Grede. Kardashian, frustrated with existing shapewear options, aimed to create inclusive, comfortable solutions for women. The company initially launched as "Kimono" but quickly rebranded to SKIMS after cultural appropriation concerns.
SKIMS found product-market fit with millennial and Gen Z women seeking inclusive, comfortable shapewear in diverse skin tones. Kim Kardashian's social media reach (370M+ Instagram followers) drove initial awareness, with the first product drop in 2019 selling $2M within minutes. The brand expanded beyond shapewear into loungewear and underwear, capturing 70% of customers under 40. SKIMS' size range (XXS-5X) and 9+ skin tone shades per item appealed to previously underserved demographics.
Key features of SKIMS products include:
1. Inclusive sizing: Offering sizes from XXS to 5X to accommodate a wide range of body types.
2. Diverse color options: Providing 9+ skin tone shades per item to match various complexions.
3. Comfort-focused design: Using soft, stretchy fabrics for all-day wearability.
4. Versatility: Offering pieces that can be worn as both underwear and outerwear.
5. Innovative silhouettes: Creating unique shapewear designs to address specific body-shaping needs.
SKIMS has since expanded its product line to include loungewear, underwear, and swimwear. The company's success is attributed to its inclusive approach, celebrity founder's influence, and strategic marketing efforts. By 2021, SKIMS reached $275M in annual revenue, growing 90% year-over-year. The brand has also achieved a 50% repeat purchase rate, indicating strong product satisfaction and brand loyalty.
Business Model
SKIMS is a direct-to-consumer apparel company that generates revenue primarily through online sales of shapewear, loungewear, and underwear. Founded by Kim Kardashian and Jens Grede in 2019, SKIMS has rapidly grown to a $4 billion valuation by leveraging a unique business model that combines celebrity influence, inclusive sizing, and strategic partnerships.
At its core, SKIMS monetizes through e-commerce sales on its website, offering a wide range of products in various sizes and skin-tone shades. The company's pricing strategy positions its items as premium yet accessible, with most products falling in the $30-$100 range. This approach allows SKIMS to capture a broad customer base while maintaining healthy margins.
A key element of SKIMS' business model is its ability to create buzz and drive demand through limited-edition drops and collaborations. By releasing new products in limited quantities, SKIMS generates a sense of scarcity that encourages impulse purchases and repeat visits to their website, with CEO Jens Grede claiming that more than 11 million people have signed up for product restock alerts on the SKIMS website.
SKIMS has expanded its reach through strategic partnerships with retailers like Nordstrom and Selfridges, providing additional revenue streams and exposure to new customer segments. In June 2023, SKIMS opened its first European pop-up shop in partnership with Selfridges, and in 2024, SKIMS opened its first permanent brick-and-mortar location in Georgetown, with several more locations planned for the back half of the year.
SKIMS has expanded its reach through strategic partnerships with retailers like Nordstrom and Selfridges, providing additional revenue streams and exposure to new customer segments. The company has also ventured into new product categories, such as menswear and swimwear, to diversify its offerings and tap into new markets.
Central to SKIMS' success is its marketing approach, which leverages Kim Kardashian's massive social media following and celebrity status. This allows the company to reach millions of potential customers with minimal traditional advertising spend, significantly reducing customer acquisition costs compared to traditional apparel brands.
Competition
SKIMS competes in the shapewear, intimates, and loungewear markets, facing competition from established brands, fast fashion retailers, and other celebrity-backed labels. The global shapewear market size was valued at USD $2.4B in 2022 and is expected to reach $3.8B by 2031, growing at a CAGR of 5.5%.
Traditional Shapewear and Intimates
SKIMS's primary competition comes from established shapewear brands like Spanx, Maidenform, and Wacoal. These companies have long-standing reputations and wide distribution through department stores and specialty retailers.
Spanx, founded in 2000, remains a major player in the shapewear market. While specific revenue figures are not publicly available, the company was valued at $1.2 billion in 2021 when investment firm Blackstone acquired a majority stake.
Maidenform, owned by Hanesbrands Inc., reported net sales of $512 million in 2022, a 3.9% decrease from the previous year. However, the brand maintains a strong presence in the shapewear market.
Wacoal, a Japanese company with a significant presence in the US market, reported global sales of approximately $1.3 billion in fiscal year 2022, with shapewear being a key product category.
SKIMS differentiates itself through its inclusive sizing (XXS to 5X), diverse shade range (over 10 skin tone options), and modern, minimalist aesthetic. For example, SKIMS offers its Sculpting Bodysuit for $62, while a comparable Spanx bodysuit retails for $78.
Fast Fashion and Affordable Intimates
In the more affordable segment, SKIMS faces competition from fast fashion giants like Zara, H&M, and SHEIN, as well as value-oriented intimates brands like Aerie and ThirdLove.
H&M reported revenue of $22.26 billion for the fiscal year 2023, showing a slight increase from the previous year. SHEIN recorded roughly $33B in revenue in 2023, up 43% from 2022.
These competitors often offer similar styles at lower price points. However, SKIMS maintains an advantage through its perceived higher quality, celebrity association, and carefully curated product drops that create a sense of scarcity and urgency.
The brand's direct-to-consumer model also allows for greater control over the customer experience and data collection, enabling more targeted marketing and product development.
Celebrity and Influencer-Backed Brands
SKIMS also competes with other celebrity-founded or endorsed intimates and loungewear brands, such as Rihanna's Savage X Fenty and Lizzo's Yitty. These brands similarly leverage star power and social media marketing to build buzz and attract customers.
SKIMS sets itself apart through Kim Kardashian's hands-on involvement in product development and marketing, as well as its broader product range that extends beyond lingerie into everyday basics and loungewear.
The brand's collaborations with high-profile figures like Kate Moss and the U.S. Olympic team have further cemented its position as a fashion-forward, culturally relevant label.
As SKIMS expands into new categories like swimwear and menswear, it will face additional competition from specialized brands in these segments.
However, its strong brand identity, data-driven approach to product development, and ability to generate organic buzz through social media and celebrity connections position it well to continue growing market share across multiple apparel categories.
TAM Expansion
SKIMS has tailwinds from the growing demand for inclusive, comfortable shapewear and loungewear, as well as the increasing influence of social media on fashion trends. The company has the opportunity to grow and expand into adjacent markets like menswear, activewear, and international markets.
Inclusive Fashion and Body Positivity
SKIMS has capitalized on the growing demand for inclusive fashion, offering a wide range of sizes and skin-tone shades—from size XXS to 4X, with 9 different skin tones offered. This approach aligns with the broader body positivity movement, which has gained significant traction in recent years.
As consumers continue to seek out brands that embrace diversity and inclusivity, SKIMS is well-positioned to expand its product lines and capture a larger share of the market.
The company could leverage this trend to expand into other clothing categories that traditionally lack size inclusivity, such as swimwear, activewear, and formal wear. By applying its inclusive sizing model to these new categories, SKIMS could tap into underserved segments of the fashion market and significantly increase its total addressable market.
Digital-First Approach and Social Media Influence
SKIMS' success is largely attributed to its digital-first strategy and the social media influence of its co-founder, Kim Kardashian. This approach has allowed the company to quickly adapt to changing consumer preferences and trends.
As of 2023, about 20% of SKIMS' online customer base lives overseas, indicating strong international demand. The company's digital-first approach has enabled it to reach a global audience without the need for extensive physical retail infrastructure.
As social media continues to shape fashion consumption patterns, SKIMS can leverage its strong online presence to expand into new product categories and markets with relatively low overhead costs. The company has already begun diversifying its product offerings, venturing into categories such as pajamas and swimwear.
The company could explore partnerships with other influencers and celebrities to create co-branded lines, further expanding its reach and appeal to different demographics. Additionally, SKIMS could develop a more robust content strategy, creating lifestyle content that showcases its products in various contexts, thereby increasing engagement and driving sales.
International Expansion and Retail Presence
While SKIMS has achieved significant success in the United States, there is substantial room for growth in international markets.
The company has already begun expanding into select countries, but there is potential to accelerate this growth by tailoring its product offerings and marketing strategies to different regions.
The company has already begun expanding into select countries, but there is potential to accelerate this growth by tailoring its product offerings and marketing strategies to different regions. SKIMS has tested markets in Paris and Hong Kong and is considering establishing international flagship stores.
Furthermore, SKIMS is actively exploring a strategic expansion of its retail presence. While the company has primarily operated as a direct-to-consumer brand, it opened its first permanent brick-and-mortar store in Georgetown in June. Other stores—such as their inaugural flagship store in Los Angeles, a 5,000-square-foot boutique on Sunset Boulevard—are set to launch in the back half of 2024. SKIMS executives are planning to establish a minimum of four stores in the upcoming year, considering locations in markets known for regional tourism, such as New York, Dallas, Atlanta, and Miami.
Risks
1. Overreliance on Kim Kardashian's personal brand: SKIMS' rapid growth has been heavily driven by Kim Kardashian's massive social media following and celebrity status. However, this creates significant key person risk. Any major scandal or decline in Kardashian's popularity could severely damage the SKIMS brand. Additionally, as the company expands globally, Kardashian's appeal may not translate as strongly in all markets, potentially limiting growth.
2. Challenges scaling production to meet demand: SKIMS has struggled to keep popular items in stock, frustrating customers and limiting sales. As the company rapidly expands into new product categories and geographies, these supply chain issues could worsen. Scaling manufacturing while maintaining quality and managing inventory across a complex product line will be an ongoing challenge that could impact growth and profitability if not executed well.
3. Competitive pressure in shapewear and basics: While SKIMS has innovated in inclusive sizing and skin tone matching, larger competitors like Spanx could replicate these features. Additionally, as SKIMS expands into basics and loungewear, it faces intense competition from established players like Victoria's Secret and Gap. Maintaining differentiation and avoiding commoditization in these crowded categories will be crucial for preserving margins and brand value long-term.
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