Skims

Sacra estimates SKIMS hit $750 million in revenue in 2023, up 50% year-over-year from $500 million in 2022. The company projects over $1 billion in net sales for 2025, as announced in its November 2025 funding round. The company has experienced rapid growth since its first full year since its founding in 2020, when it generated roughly $145 million in revenue.

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.

Skims raised $225M in November 2025 at a $5B valuation, led by Goldman Sachs Alternatives with participation from funds affiliated with BDT & MSD Partners. With over $1 billion projected in net sales for 2025, this implies a roughly 5x revenue multiple.

Skims previously raised $330M in a Series C round in July 2023, reaching a $4B valuation. With $750M in revenue for 2023, that round implied a 5.3x revenue multiple.

Skims has raised a total of $956M from multiple prominent investors including Goldman Sachs Alternatives, BDT & MSD Partners, Wellington Management, Greenoaks Capital, Lone Pine Capital, D1 Capital Partners, and Thrive Capital.

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's size range (XXS-5X) and 9+ skin tone shades per item appealed to previously underserved demographics, capturing 70% of customers under 40. SKIMS has since expanded beyond its core shapewear into loungewear, underwear, and swimwear.

SKIMS is expanding into beauty, skincare, and fragrance, with products slated to launch in 2026. The company acquired SKKN by Kim—Kim Kardashian's skincare brand—from Kardashian and Coty (which held a 20% stake) in March 2025, bringing Kardashian's beauty rights and ventures under the SKIMS brand. The company appointed Diarrha N'Diaye-Mbaye as Executive Vice President of Beauty & Fragrance to lead product development and brand strategy for SKIMS Beauty.

SKIMS operates 18 stores in the U.S. and 2 in Mexico, including a 4,546 square foot Los Angeles flagship on Sunset Strip (opened April 2025). The company has signed a 10-year lease for its first standalone UK flagship store at 245–247 Regent Street in London, a 12,000 square foot location slated to open in summer 2026, formalizing its London presence beyond concessions and pop-ups and adding a permanent retail hub in a prime West End location.

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 $5 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 is shifting toward a predominantly physical retail business model, deploying capital from its latest funding to expand its brick-and-mortar footprint domestically and internationally. The company operates 18 owned retail stores in the U.S. and 2 franchise doors in Mexico, anchored by its first permanent brick-and-mortar location in Georgetown and several additional doors opened since. SKIMS has also expanded its reach through strategic partnerships with retailers like Nordstrom and Selfridges—including a European pop-up shop with Selfridges—providing additional revenue streams and exposure to new customer segments.

SKIMS has expanded into activewear through NikeSKIMS, a joint venture with Nike. The debut collection comprises 7 collections and 58 silhouettes sold via Nike.com, Skims.com, and select retail locations, with a second drop expanding the line to 65 silhouettes and introducing accessories including socks, waist packs, and training gloves. The Spring '26 collection adds footwear and extends NikeSKIMS into Europe, the Middle East, Australia, and Korea. The company has also ventured into other 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.

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%.

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.

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.

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.

SKIMS' entry into activewear through NikeSKIMS brings it into direct competition with established athletic brands like Lululemon, Athleta, and Alo Yoga. Lululemon reported $9.6 billion in revenue for fiscal 2023, with its women's segment representing the majority of sales. Athleta, owned by Gap Inc., generated approximately $1.5 billion in revenue in 2023.

NikeSKIMS currently offers 65 silhouettes across 7 collections alongside accessories including socks, waist packs, and training gloves, available via Nike.com, Skims.com, and select retail locations. The Spring '26 collection adds footwear and enters Europe, the Middle East, Australia, and Korea—directly challenging Lululemon and Alo Yoga on their international home turf with a combined Nike performance infrastructure and SKIMS inclusive-sizing identity.

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.

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.

SKIMS has capitalized on the growing demand for inclusive fashion, offering a wide range of sizes and skin-tone shades—from size XXS to 5X, 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.

While SKIMS has achieved significant success in the United States, there is substantial room for growth in international markets. About 20% of SKIMS' online customer base lives overseas, indicating strong pre-existing international demand the company is now converting into permanent physical infrastructure.

SKIMS is accelerating its international retail footprint using proceeds from its November 2025 financing. The company has signed a 10-year lease for a 12,000 sq. ft. flagship at 245–247 Regent Street in London—its first standalone UK store, anchoring a permanent West End presence beyond prior concessions and pop-ups, with an opening slated for summer 2026. NikeSKIMS simultaneously extends SKIMS' international reach through planned Spring '26 distribution across Europe, the Middle East, Australia, and Korea.

Domestically, SKIMS operates 18 owned U.S. retail stores and 2 franchise doors in Mexico, and the company has stated its intention to become a predominantly physical business over the next few years, suggesting continued store openings in new domestic markets.

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 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.

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.