Kim Kardashian might not be able to pass a bar exam or get through a law-studies exam without cheating, but homegirl can sell the f–k out of underwear and loungewear. It’s crazy that after all of Kim’s side businesses and failed attempts to create various revenue streams, she’s now a major stakeholder and co-founder of Skims, one of the most successful start-ups in the past decade. Skims’ is actually only six years old and, courtesy of a new round of financing, it is now worth $5 billion. Kim owns a 35% stake in the company. Bonkers. From the NYT Dealbook:

Kim Kardashian’s apparel giant, Skims, has gotten significantly more valuable. The company has raised $225 million in new financing, at a $5 billion valuation, Lauren Hirsch is first to report. It’s the latest sign of success for Skims, which has grown significantly beyond its shapewear and underwear roots — and signals what lies ahead.

The round was led by Goldman Sachs Alternatives, with participation from BDT & MSD Partners. The company, founded by Kardashian and Jens Grede in 2019, is profitable and expected to exceed $1 billion in net sales this year. Skims’s previous fund-raising round, in 2023, collected $270 million at a $4 billion valuation.

Skims will use the new funds to add stores. The brand now has 18 locations in cities including New York, Los Angeles, Austin, Atlanta and Boca Raton, Fla. It wants to further expand that footprint internationally, starting with emerging markets.

“Today’s announcement validates the hard work of our incredible team and partners who have helped us reach this exciting new chapter, becoming a global omnichannel retail brand,” Kardashian, the brand’s chief creative officer, said.

The brand will also continue to expand into new products. That already includes the splashy launch of NikeSkims, a collaboration with Nike that the brands announced in February. The line focuses on women’s apparel, with plans to add footwear and accessories down the road, The Times has reported.

Skims is the official underwear partner of the W.N.B.A., the N.B.A. and USA Basketball.

Skims has been laying the groundwork to build up its beauty business. Earlier this year, the brand bought back the 20 percent stake in Kardashian’s beauty business it had sold to Coty. It recently tapped Diarrha N’Diaye, founder of the beauty company Ami Colé, to lead the new venture.

Goldman Sachs Alternatives and BDT & MSD Partners are new investors in Skims. Previous investors include the asset management firm Wellington Management, Greenoaks Capital Partners, D1 Capital Partners, Imaginary Ventures and Thrive Capital.

What about a public listing? Speculation about going public has hung around Skims for years. In an interview with WWD late last year, Grede — who previously told DealBook that the company “deserves” to be a public company — played down the prospects of an I.P.O. in the near term. “We might make that position in the future, but that’s not what I’m thinking about,” he said.

[From The NY Times]

I didn’t realize that Skims bought back Kim’s beauty brand. That’s clever, to try to bring everything under one proverbial roof. I bet Kim will do Skims fragrances as well. Anyway, it’s still bonkers to me that this is what stuck for Kim, that this is the company which caught fire and really took her next-level. A $5 billion valuation in six years is just… crazy.

Photos courtesy of Backgrid, Skims’ IG.