As is the case with any great consumer brand, it’s difficult to completely explain the power of Skims.
But as a millennial woman, I can tell you that the grip is there. One of my best friends and I not only actively pay attention to Skims collaborations and drops, but send links back and forth in real-time. We’re deciding not if we’re buying something, but what. And on my 30th birthday, I told everyone who would listen: All I want is to sit on the beach and wear a sweatsuit Kim Kardashian made.
The best I can do to explain the essence of what makes Skims so impressive is this: It’s a triumph of aspirational marketing (cue, for example, the Dolce&Gabbana collaboration) and sleek accessibility in pricing and sizing. On the basis of its allure, I loved seeing the news drop yesterday that Skims raised $225 million at a $5 billion valuation. Goldman Sachs Alternatives led the round, and the company said that by the end of 2025, it will be on track to surpass $1 billion in net sales.
“Skims speaks to the power of a consumer product that resonates with a lot of people,” said Shamin Walsh, BAM Ventures managing director, via email. “This is entirely different from the old direct-to-consumer days where they’re buying revenue. Skims has clearly cracked a formula. If they are profitable and producing that much revenue, then it actually seems like a reasonable multiple based on the strength of the brand and the way they’re expanding.”
