Economic uncertainty has pushed consumers to become far more selective with their spending, resulting in ongoing sales declines and reduced foot traffic for many retailers.

This weakening demand has forced even the most established brands to close stores as they grapple with declining customer demand and the continued rise of online shopping.

However, while many long-standing retailers struggle to stay afloat, a newer contender has emerged as a significant player in the industry.

In less than six years, it has grown at an astonishing pace, outperforming many legacy competitors and emerging as a standout success in a difficult retail landscape.

Former Paris Hilton assistant turned reality star and entrepreneur Kim Kardashian has built a billion-dollar fortune through her immensely successful reality TV shows, production deals, and, undeniably, her booming Skims brand.

Alongside her co-founder, Kardashian launched Skims in 2019, introducing a shapewear and apparel line designed around body positivity and inclusivity, with sizes ranging from XXS to 4X.

Perhaps time was of the essence, as the pandemic fueled an obsession with online shopping, particularly loungewear, driving U.S. e-commerce sales up 43% in 2020, according to the U.S. Census Bureau.

Maybe it was Kardashian’s celebrity power, the strength of the brand, or a combination of both. Either way, Skims has become a global phenomenon, growing at a rate most long-standing brands can only envy.

“In an industry often criticized for being exclusive, Skims has built an empire by doing the opposite,” said OptiMonk Growth Marketing Lead Nikolett Lorincz.

“SKIMS’ marketing success is no accident. From embracing diversity to mastering social media and employing scarcity tactics, SKIMS has created a brand that not only resonates with its audience but keeps them coming back for more.”

Skims is now valued at $5 billion following its latest funding round.

Shutterstock

Skims hits a $5 billion valuation

Skims is now valued at $5 billion following a new funding round led by Goldman Sachs (GS), in which it raised $225 million. The valuation marks a $1 billion increase in just two years.

In 2023, Skims was valued at $4 billion and generated $750 million in revenue, according to The New York Times. This year, annual sales are expected to hit $1 billion.

“This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions SKIMS to unlock its next phase of growth,” said Skims Co-Founder and Chief Executive Officer Jens Grede in a press release.

The brand plans to use the proceeds from the investment to support the development of more physical stores and further expansion into brick-and-mortar retail and international markets.

Skims currently operates 19 stores across the U.S., including locations in New York, Los Angeles, Georgetown, Aventura, Austin, Houston, Atlanta, Boca Raton, Paramus, Las Vegas, Bloomington, Palo Alto, and Tysons, as well as one in Mexico City.

The company plans to accelerate both domestic and international openings starting in 2026, with the goal of becoming a predominantly physical business in the coming years.

Part of the funding will also be used to drive product innovation and expand into new categories. While the brand will strengthen its core shapewear and intimates line, it also plans to scale its apparel and activewear offerings.

“SKIMS stands as a solutions-driven apparel innovator, pioneering new categories and redefining everyday wear. We look forward to partnering with management to pursue significant opportunities and deliver disruptive, sustained growth,” said Goldman Sachs Alternatives Global Head of Hybrid Capital Beat Cabiallavetta in a press release.

The Skims strategy

Kim Kardashian’s massive cultural influence and her ability to tap into high-profile networks have significantly contributed to the brand’s rise. Skims has built a marketing strategy centered on cultural relevance, partnering with top celebrities and influencers to create viral campaigns.

Skims’ campaigns have featured pop icons like Lana del Rey and Sabrina Carpenter, supermodels Heidi Klum, Tyra Banks, and Candice Swanepoel, and influencers such as Alex Cooper.

The company has also sealed major deals with Team USA for the Olympics and signed multi-year partnerships with the NBA, WNBA, and USA Basketball.

More Retail News:

  • Lululemon bets on NFL fans amid U.S. sales slump
  • JCPenney borrows bold Macy’s strategy to boost holiday sales
  • Popular women’s underwear company shuts down, stops shipping, no bankruptcy

Kardashian’s own fashion influence has helped her develop high-profile collaborations with renowned brands like Dolce & Gabbana, Swarovski, The North Face, and Nike, many of which have sold out within minutes of their launch.

After becoming a success among women, Skims expanded into menswear in 2023. Since then, campaigns have starred Usher, Post Malone, Snoop Dogg, Neymar Jr., and other stars.

Lululemon struggles while Skims thrives

Lululemon (LULU), which once dominated the activewear space, has been facing growing challenges as consumer demand has softened. Rising tariffs have further complicated operations, especially since the company’s products are predominantly manufactured in Vietnam and China, as listed in its 2024 supplier List.

In the second quarter of 2025, Lululemon’s net revenue in the Americas increased by 1% year over year, while comparable sales decreased by 4%. That decline is crucial, as the Americas accounted for around 70% of its total revenue.

In response, Lululemon has launched a new strategy centered on “newness,” accelerating product refreshes, introducing updated silhouettes, and rolling out seasonal color variations to its core products, aiming to capture consumer interest.

Still, Lululemon’s stock has also fallen by more than 55% year to date as of November 14.

While Skims has become a $5 billion brand in under six years, Lululemon, founded 19 years prior, remains far larger, valued at roughly $20.1 billion as of 2025. Yet the contrast between the two companies highlights a greatly shifting market, one where innovative brands like Skims can outpace long-established players struggling to adapt.

“While Kim’s influence and personal wealth have clearly had a hugely positive impact on SKIMS’ overall business success to date, it’s evident that the brand wouldn’t be where it is today without the extremely well-executed, multi-channel marketing approach,” said Battenhall Senior Account Director Nathalie Allen.

“With this latest round of fundraising, and what we can only assume continues to be a progressive and exciting marketing strategy, SKIMS is well-positioned to expand its product line and potentially IPO.”

Related: Companies creating lucrative fashion empires by following trends