How Kim Kardashian turned her apparel company into a $6b giant

It is that growth trajectory and popularity that drew investors to the company when executives began raising money in recent months, according to Grede. The asset manager Wellington Management led the latest round. Other participating firms include Greenoaks Capital Partners and the existing backers D1 Capital Partners and Imaginary Ventures.

“Skims has maintained unprecedented momentum since the brand’s inception,” Michael Carmen, a co-head of private investments at Wellington, said in a statement. “We’re thrilled to partner with the brand to support it through this pivotal growth stage.”

Skims’ success has been among the biggest standouts in Kardashian’s business empire, which now includes skin care, fragrances and even a private equity firm. Already minted as a billionaire after Skims’ 2021 fundraising round, Kardashian remains the company’s single biggest shareholder, and together she and Grede still own a majority stake.

Early on, Skims had to contend with pandemic-driven supply-chain disruptions that made it hard to source fabrics for its clothing.

Significant challenges now, according to Kardashian and Grede, include managing inventory as the company expands its offerings and opens physical stores, as well as competing against companies offering steep discounts as consumers cut back on discretionary spending in the face of high inflation. It is a problem that has bedevilled many retail companies, and will become more pressing as Skims opens its own stores, Kardashian said.

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Skims’ latest investment is likely to spur questions about when it intends to go public, given both the company’s swelling valuation and the involvement of Wellington, which is known for investing in companies before they go public. The apparel maker has taken other steps typical of businesses setting themselves up for initial offerings, including hiring a chief financial officer last year.

Grede demurred on the topic of timing, saying he and Kardashian were in no rush. But he noted that investors have shown interest in recent months in consumer-facing businesses.

And going public remains one of the company’s goals. “At some point in the future, Skims deserves to be a public company,” he said.