Skims, Kim Kardashian’s shapewear brand, valued at $5 billion

Skims, the shapewear brand co-founded by celebrity and entrepreneur Kim Kardashian, says it is now valued at $5bn (£2.93bn) after raising $225m in new funding.

The company says it plans to use money from investors, including an arm of Wall Street banking giant Goldman Sachs, to open more stores and expand around the world.

“We look forward to taking Skims to the next level while continuing to innovate and set the standard for our industry,” Kardashian said Wednesday.

The funding round is one of the largest this year for a U.S. consumer brand and comes as Skims faces stiff competition from rivals like Lululemon.

Skims, which operates 18 stores in the United States and sells its products through retailers around the world, will focus “primarily” on its physical retail business over the next few years, it said in a statement.

The company expects sales to exceed $1 billion this year, which Skims CEO Jens Grede said has given the company the confidence to pursue its long-term goals.

The brand debuted in 2019 with a shapewear line and has since expanded its range to include loungewear and other fashion categories.

The company’s growth has propelled it deeper into the consumer athleisure market, largely dominated by brands like Lululemon and Alo Yoga.

Skims has also amassed a large pool of influencers, including the Kardashians and other celebrities like Megan Fox and Paris Hilton, to boost its appeal.

Since its launch, the company has faced some controversies. Its initial name, Kimono Intimates, was criticized for ignoring the importance of traditional Japanese attire, prompting the company to come up with another name: Skims.

A Skims product – a headband worn while sleeping – has divided the internet. Some hailed it as the future of non-invasive facial contouring, but others condemned it as dystopian and said the company made women feel more insecure.