The shapewear and apparel company Skims has announced a significant new investment round, securing $225 million in fresh capital. This latest funding values the brand at an estimated $5 billion, marking a major milestone for the business.
Founded in 2019, Skims reported it is on course to surpass $1 billion in net sales this year. The company stated the new funds will be used to fuel expansion, including broadening its core intimates and shapewear collections, moving deeper into apparel and activewear categories, and accelerating its retail footprint and international growth.
The investment round was spearheaded by Goldman Sachs Alternatives, with additional participation from funds affiliated with BDT & MSD Partners.
In a statement, the company’s leadership expressed confidence in its trajectory. “This milestone reflects continued confidence in our long-term vision,” said CEO Jens Grede, adding that it positions the brand to “unlock its next phase of growth.” The company’s chief creative officer echoed the sentiment, stating the team is focused on innovation and “taking Skims to the next level.”
Skims, which emphasizes inclusive sizing, currently operates 18 retail stores in the United States and has two franchise locations in Mexico. The company indicated it is building a foundation to become a predominantly physical retail business in the coming years. It has also established a partnership with Nike to develop a women’s activewear line.
The new valuation places Skims ahead of established competitors in the market, with a combined worth greater than both Victoria’s Secret and Under Armour.
While the CEO has previously suggested the company “deserves” to be publicly traded, he indicated last year that an initial public offering is not an immediate priority. Following this funding round, the net worth of the company’s founder has reportedly increased substantially, according to financial publications.