COTY - Kim Kardashian's Skims raises $270M valued at $4B

2023-07-19 10:40:43 ET

Kim Kardashian’s Skims raised $270M in a new funding round that values it at $4B, the New York Times reported.

That compares to a $3.2 billion valuation investors gave the startup last year.

Skims, which started as a shapewear company to help people fit into tight clothing they might not otherwise get into, now also sells swimwear and loungewear. Kardashian plans on opening flagship stores in New York and Los Angeles.

The clothier is profitable, Chief Executive Officer Jens Grede told the newspaper . Skims should take in $750 million in revenue this year, up from $500 million in 2022. Grede said 11 million people have joined wait-lists for some of the brand’s items.

SKKN

Kardashian is reportedly trying to repurchase its stake in her beauty brand SKKN, which she sold to Coty ( NYSE: COTY ) in 2021 for $200M. That valued the brand at $1B at the time.

Last week, Jefferies estimated that SKKN sales today are a fraction of what they were in 2021 and the price for the 20% stake would be less than the $200M paid to Kim then. Google trend data also shows declining interest in KKW and SKKN.

“The challenge for celebrity brands is to convert trial and initial enthusiasm into longer duration loyalty, regimen consistency and replenishment purchases,” Jefferies said.

More on clothing and beauty purveyors:

• Kim Kardashian said to pre-IPO fundraise for Skims; would value brand at close to $4B
• Coty drops after Kim Kardashian news; Jefferies sees upside
• Estee Lauder shares fall after Goldman says China sales falling short
• Urban Outfitters upped to Buy, Capri cut to Hold at Morgan Stanley

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