Skims has dramatically transformed the shapewear industry, shifting from uncomfortable, outdated undergarments to fashionable, body-inclusive designs. Founded by Kim Kardashian and Jens Grede, the brand’s innovative approach has attracted substantial investment and propelled Kardashian’s net worth into the billionaire stratosphere. As it continues to flourish, Skims presents a compelling case study in modern retail and brand evolution.
Skims’ Disruptive Impact on Shapewear
Skims emerged with the mission to revolutionize the “shapewear” category, which typically features tight-fitting undergarments that aim to shape and smooth the body beneath clothing. Historically a sector dominated by rigid, beige products from legacy brands, shapewear was often uncomfortable and lacked innovation.
In stark contrast, Skims introduced soft, stretchy, and breathable fabrics in a diverse palette of tones and sizes. What was once a private and often uncomfortable necessity has become a fashionable and social-media friendly choice, helping Skims redefine the market.
Upon launching its first inventory online, Skims achieved an astounding $2 million in sales within just 10 minutes. This immediate demand highlighted that the brand was not merely filling a gap; it was actively reshaping the entire category. This phenomenal start soon attracted investors, positioning Skims among the most sought-after private apparel companies worldwide and leading to a significant valuation increase.
Skyrocketing Valuations and Financial Performance
The financial milestones of Skims are striking. In April 2021, it raised funds at a $1.6 billion valuation, a remarkable figure for a startup in the shapewear space. By early 2022, this valuation had doubled to $3.2 billion, further cementing Kim Kardashian’s status as a billionaire. In 2023, the company raised an additional $270 million, boosting its valuation to $4 billion.
Skims’ financial performance has been equally impressive, generating approximately $500 million in revenue in 2022 and projecting $750 million in 2023. The brand has expanded its offerings beyond shapewear to include underwear, loungewear, men’s basics, and high-profile partnerships, crossed the $1 billion mark in annual sales, and established physical retail locations in major cities including New York and Los Angeles.
This upward trajectory reached new heights with recent reports indicating that Skims secured funding at a remarkable $5 billion valuation after closing a new $225 million round led by Goldman Sachs Alternatives and BDT & MSD Partners. This valuation not only ranks Skims among the world’s most valuable privately held fashion companies but also positions it for aggressive international expansion into emerging markets.
The Implications for Kim Kardashian’s Wealth
Kim Kardashian and Jens Grede each hold a one-third stake in Skims, with co-founder Emma Grede owning a smaller share. Collectively, they maintain the majority control of the company. At the latest $5 billion valuation, Kardashian’s estimated stake stands at $1.67 billion, an increase from approximately $1.32 billion at the previous valuation. This jump has elevated her net worth from $1.7 billion to $2 billion.
The Kardashians’ Wealth Landscape
With her new net worth of $2 billion, Kim Kardashian surpasses her family members significantly in financial stature. Her wealth is nearly three times that of Kylie Jenner, and within a family adept at monetizing fame, Kim’s financial prowess sets her apart.
- Kim Kardashian — $2 Billion
- Kylie Jenner — $700 Million
- Kris Jenner — $170 Million
- Kourtney Kardashian — $65 Million
- Khloé Kardashian — $60 Million
- Kendall Jenner — $60 Million
- Caitlyn Jenner — $25 Million
- Rob Kardashian — $10 Million
The Fate of Spanx
Prior to Skims’ ascent, Spanx was the dominant name in the shapewear industry, founded in 2000 by Sara Blakely with a mere $5,000 investment. Over the years, the brand became a household name and a significant player in apparel. However, it has recently receded from cultural prominence compared to Skims’ rapid rise.
In 2021, Blakely sold a majority stake in Spanx to Blackstone at a reported valuation of $1.2 billion, marking her entry into the billionaire club. After this sale, she distanced herself from day-to-day operations, and the company’s marketing and product innovations have noticeably slowed.
Skims has approached the market with a fresh perspective that prioritizes inclusive tones, modern fabrics, aggressive social media marketing, and a broad product line. As consumers have gravitated toward this innovative brand identity, Skims has not just competed with Spanx—it has effectively eclipsed it.
While Spanx remains a profitable enterprise, its cultural relevance is waning in the face of Skims’ fast growth and market domination.
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