Most celebrity fashion lines follow a predictable pattern. License your name to an established brand, appear in a few ads, collect royalties. Minimal involvement, minimal risk, minimal upside. But when Kim Kardashian spent 15 years cutting and altering shapewear to fit properly under her outfits, she wasn’t just solving a personal problem. She was identifying a billion-dollar market failure.
In September 2019, Kim launched SKIMS alongside Swedish entrepreneur Jens Grede, not as a vanity project but as a solutions-driven business addressing what she saw as shapewear’s fundamental flaws: uncomfortable designs, limited sizing, lack of diverse skin tones, and products that simply didn’t work under modern clothing.
The SKIMS Kim Kardashian Results:
- Current valuation: $4 billion (July 2023 Series C)
- Kim’s stake: Approximately 35%, worth $1.4 billion
- Annual revenue: $750+ million (2023 projected), up 58% from 2022
- Profitability: EBITDA margin over 23%, highly profitable
- Total funding: $670 million raised across four rounds
- First year: Sold 3 million products, generated $2M in first 10 minutes
By July 2023, SKIMS had raised $270 million in Series C funding at $4 billion valuation, generated $750+ million in annual revenue, sold over 3 million products in year one alone, and expanded from shapewear into loungewear, swimwear, underwear, and beyond.
Why Shapewear? Kim’s Vision Born from 15 Years of Frustration
“I’ve been designing shapewear for 15 years,” Kim told investors during SKIMS’ early pitches. This wasn’t hyperbole. As someone whose career involved looking camera-ready daily for reality TV, red carpets, and photo shoots, Kim became a shapewear power user out of necessity.
The problem? Traditional shapewear was terrible.
The Shapewear Market Before SKIMS:
- Uncomfortable: Stiff, restrictive materials that made breathing difficult, sitting uncomfortable
- Limited sizing: Most brands offered XS-XL, maybe 2X, excluding millions of potential customers
- Lack of skin tone diversity: “Nude” meant beige, women with darker or lighter skin tones couldn’t find matching pieces
- Dated designs: Focused on aggressive compression, hadn’t evolved for modern fashion’s body-conscious silhouettes
Kim’s Personal Solution: Cutting and Customizing
Dominated by legacy brands like Spanx founded 2000, Maidenform, and Wacoal, the shapewear industry hadn’t innovated in decades. Women called products “torture devices” they endured for special occasions.
Faced with these inadequacies, Kim did what any frustrated customer would do: she hacked the products. She cut shapewear apart, dyed pieces to match her skin tone, combined different garments, and created custom solutions ensuring outfits looked perfect.
The Market Opportunity:
- Kim’s DIY approach: Worked for her with stylists helping, but most women couldn’t afford custom solutions
- The gap: Create shapewear that actually worked for real bodies, real skin tones, real modern clothing
- Vision: Comfortable enough for all-day wear, sizes from XXS to 5X, skin tone options spanning albinism to deepest complexions
- Design philosophy: Pieces for specific clothing needs, not generic compression
“I would always cut up my shapewear to make my own styles, and there was nothing in the marketplace that I felt truly had it all,” Kim explained, identifying the opportunity to create shapewear designed for specific clothing needs.
The SKIMS Journey: Building a $4 Billion Brand in 4 Years
The Partnership: Kim + Jens Grede (2019)
Kim didn’t build SKIMS alone. She partnered with Jens Grede, a Swedish fashion entrepreneur who co-founded Frame (premium denim) and Good American (inclusive denim brand with KhloĂ© Kardashian). Jens brought fashion industry expertise, operational knowledge, supply chain connections, and startup experience Kim lacked.
Jens’ wife Emma Grede, also a co-founder, added business acumen from building Good American and experience scaling fashion brands. The Gredes understood manufacturing, retail, e-commerce, and how to translate celebrity influence into sustainable business.
Division of Labor:
- Kim as Chief Creative Officer: Leading design, marketing, brand vision
- Jens as CEO: Handling operations, finance, strategic partnerships
- Kanye West contribution: “Ghost Creative Director” created SKIMS’ minimalist logo, primarily consultative involvement
- Strategic advantage: Allowed Kim to focus on creative direction and marketing while Jens managed business fundamentals
The Name Controversy: From Kimono to SKIMS
Originally, Kim planned to name her brand “Kimono Intimates,” a play on her name. She filed trademarks and prepared for launch under this name in June 2019.
The backlash was immediate and severe. Critics argued the name disrespected Japanese culture and appropriated a traditional garment with deep cultural significance. Daisaku Kadokawa, mayor of Kyoto, wrote to Kim asking her to reconsider.
From Crisis to Opportunity:
- Quick response: Kim listened, announced name change within days, apologized for any offense
- Kim’s statement: “I am always listening, learning and growing”
- Rebrand success: “SKIMS” referenced skin and Kim, was easy to remember, worked globally, avoided cultural insensitivity
- Publicity bonus: Controversy generated massive publicity ensuring everyone knew Kim Kardashian was launching shapewear
The Launch: $2 Million in Minutes (September 2019)
SKIMS officially launched September 10, 2019, selling exclusively through its website. The initial collection included solution shorts, bodysuits, and sculpting pieces, nine skin tone shades from light to deep, sizes XXS through 5X, and prices ranging $18-$98.
Within 10 minutes, SKIMS Kim Kardashian sold out completely, generating over $2 million in revenue. The website crashed from traffic. Restocks sold out within hours. The brand sold 3 million products in its first year.
What Drove Unprecedented Demand:
- Kim’s 355 million followers: Massive social media reach (Instagram) provided marketing value worth tens of millions
- Pent-up demand: Women waited years for shapewear serving diverse bodies and skin tones
- Authenticity: Personal story of cutting shapewear for 15 years provided credibility
- Influencer amplification: Kim’s sisters (Kylie, Kendall, Kourtney, KhloĂ©) and celebrity friends wore SKIMS on social media
Year One: Proving the Model (2019-2020)
Revenue generated estimated $100-150 million in first-year revenue. Products sold exceeded 3+ million units. Category expansion added loungewear, sleepwear, and basics beyond shapewear. Funding raised $5 million seed round from Imaginary Ventures.
Interestingly, the COVID-19 pandemic helped SKIMS. With people stuck at home, demand for uncomfortable shapewear declined, but SKIMS’ comfortable loungewear and sleepwear thrived. The brand’s soft, breathable fabrics and relaxed fits aligned perfectly with pandemic lifestyle needs.
Series A & Explosive Growth (2021):
- April 2021: Raised $154 million Series A led by Thrive Capital at $1.6 billion valuation
- Revenue: Nearly doubled to $250-300 million
- Category launches: Swim (summer 2021), Men’s underwear and loungewear (late 2021)
- Marketing campaigns: Featured Megan Fox, Kourtney Kardashian, other celebrities
- Retail testing: Partnered with Nordstrom for select distribution
Series B, C & $4 Billion Milestone
Series B: Doubling in 9 Months (2022)
January 2022 saw SKIMS raise $240 million Series B led by Lone Pine Capital at $3.2 billion valuation, doubling in just 9 months. Revenue reached approximately $400 million. Physical retail expansion included pop-up shops in Los Angeles, New York, Miami. International expansion shipped to 100+ countries. Team growth hired experienced fashion executives from legacy brands.
The $3.2 billion valuation in January 2022 reflected SKIMS’ proven business model including strong unit economics, high repeat purchase rates, expanding product categories, and Kim’s unmatched marketing reach.
July 2023: Series C & $4 Billion:
- Funding: $270 million Series C led by Wellington Management at $4 billion valuation
- Revenue: Projected $750+ million for full year 2023, up 58% from 2022
- EBITDA margin: Over 23%, highly profitable and rare for fast-scaling consumer brands
- Repeat purchases: Q1 2023 saw 456,000 repeat purchases, double year-earlier levels
- Flagship stores: Announced Georgetown (Washington DC) and Los Angeles locations
- Strategic partnerships: Secured NBA, WNBA, and USA Basketball underwear partnership
The Product Strategy: What Makes SKIMS Different
Inclusive Sizing: XXS to 5X
SKIMS offers nine core sizes (XXS, XS, S, M, L, XL, 2X, 3X, 4X) with 5X in select styles, ensuring 95%+ of women find their size. This contrasts with traditional shapewear brands offering 5-8 sizes, excluding millions of potential customers.
The business case for inclusivity was clear: the underserved market was massive. Plus-size women (US size 14+) represent 68% of American women yet struggled finding shapewear that fit. By serving them, SKIMS Kim Kardashian captured market share competitors ignored.
Skin Tone Diversity: 9 Shades:
- Range: Nine core nude shades spanning light to deep
- Naming: Descriptive names like Sienna, Umber, Cocoa, Onyx
- Problem solved: Before SKIMS, “nude” meant beige forcing women with darker skin to choose bright colors or settle for visible beige
- Impact: Women of all ethnicities can find nude shapewear that actually matches their skin, making it invisible under clothing
Comfort Without Compromise
Traditional shapewear prioritized compression over comfort, making pieces uncomfortable for extended wear. SKIMS uses softer, more breathable fabrics with strategic compression, providing shaping without the torture.
Customer reviews consistently praise SKIMS’ comfort: “I can wear it all day without feeling like I’m suffocating.” This comfort drives repeat purchases, as customers actually want to wear the products daily rather than reserving them for special occasions.
Modern Design for Real Life:
- Backless bodysuits: For low-back dresses
- High-waisted shorts: For high-rise pants
- Seamless construction: For body-con outfits
- Thong shapewear: For tight skirts
- Bralettes with built-in shaping: Each piece solves specific problem Kim or stylists encountered
The Business Model: How SKIMS Makes Billions
Direct-to-Consumer Foundation
SKIMS launched as D2C brand selling exclusively through its website, capturing full margins without retailer markups. This model allows 60-70% gross margins versus 40-50% selling wholesale, direct customer data and relationships, faster feedback loops for product development, and lower customer acquisition costs leveraging Kim’s social reach.
While prioritizing D2C, SKIMS selectively partners with premium retailers including Nordstrom in 2021 for select products, Selfridges in London for 2023 European debut, and flagship stores in Georgetown, Fifth Avenue NYC, and Sunset Strip LA.
Celebrity Marketing at Zero Cost:
- Kim’s reach: 355 million Instagram followers (as of 2025)
- Marketing value: Organic reach worth $50-100 million annually in advertising equivalent
- Post impact: Every Instagram post featuring SKIMS generates 10-30 million impressions, 500,000-2,000,000 likes, thousands of comments
- Celebrity campaigns: Features Heidi Klum, SZA, Lana Del Rey, Olympic athletes
Strategic Partnerships
NBA and WNBA partnership in September 2023 made SKIMS official underwear partner through multiyear deal providing on-court virtual signage during broadcasts, league platform advertising, co-branded products, and association with elite athletes.
Team USA Olympics partnership made SKIMS official underwear supplier for US Olympic teams, dressing America’s top athletes on global stage. These partnerships position SKIMS as performance-grade apparel, not just fashion, while reaching sports fans beyond Kim’s core audience.
Financial Performance Through August 2023:
- 2019 revenue: $100-150M
- 2020 revenue: $200-250M
- 2021 revenue: $300-350M
- 2022 revenue: $500M
- 2023 projected revenue: $750M+
- Profitability: SKIMS is profitable, rare for fast-scaling D2C brands
- Kim’s stake: Approximately 35%, worth $1.4 billion at $4B valuation
The Bottom Line
Kim Kardashian’s SKIMS demonstrates that celebrity brands succeed when built on authentic founder involvement, solving real problems, and strategic business execution. By transforming 15 years of personal shapewear frustration into a solutions-driven business, Kim created a $4 billion empire in just four years, generating $750+ million annual revenue with 23%+ EBITDA margins proving the business model works profitably.
Why SKIMS Kim Kardashian Succeeded:
- Solve real problems personally experienced: Kim didn’t create SKIMS because shapewear seemed trendy but because she spent 15 years frustrated by inadequate products
- Inclusivity is smart business: SKIMS proved serving diverse body types and skin tones isn’t just socially responsible but massively profitable
- Celebrity influence works with genuine involvement: Kim isn’t just spokesperson but Chief Creative Officer designing products, leading marketing, using SKIMS daily
- Partner with operational experts: Kim provided vision, brand, marketing while Jens and Emma Grede provided fashion industry expertise and operational execution
- Listen and adapt quickly: Kimono controversy could have derailed brand, instead Kim listened, apologized, rebranded quickly building goodwill
- Start D2C, expand omnichannel: Launching D2C captured full margins, adding selective wholesale and flagships later provided physical touchpoints
- Profitability matters: Maintained 23%+ EBITDA margins while scaling rapidly, attracting premium valuations
What separates SKIMS from celebrity vanity projects is execution. Kim owns 35% worth $1.4 billion, serves as Chief Creative Officer actively designing products, leverages 355 million Instagram followers for zero-cost marketing worth $50-100 million annually, and partnered with fashion experts providing operational expertise she lacked.
Key Success Factors:
- Inclusive design: Sizing XXS-5X, diverse skin tones (9 shades), comfortable designs
- Category expansion: From shapewear into loungewear, swim, underwear, men’s categories transformed SKIMS into lifestyle brand
- Strategic partnerships: NBA, WNBA, Team USA Olympics positioning as performance-grade apparel
- Retail expansion: Flagship stores on Fifth Avenue and Sunset Strip, selective wholesale maintaining brand control
The brand’s inclusive sizing ensuring 95%+ of women find their size, diverse skin tones allowing all ethnicities to find nude shapewear that matches, comfortable designs customers want to wear daily, and expansion into adjacent categories transformed SKIMS from shapewear specialist into lifestyle brand challenging established players.
With flagship stores on Fifth Avenue and Sunset Strip, partnerships with NBA, WNBA, and Team USA Olympics, and plans for continued retail expansion and international growth, SKIMS is positioned for IPO in coming years at likely $6-8 billion valuation. Kim’s $1.4 billion stake could grow to $2-3 billion post-IPO, cementing her status among the world’s wealthiest self-made women.
The journey from cutting shapewear in her closet to building a $4 billion empire shows that the best businesses solve problems founders personally experience, that inclusive design is profitable not charitable, and that celebrity influence combined with operational excellence creates outcomes traditional brands can’t replicate demonstrating the power of authentic celebrity entrepreneurship when executed with strategic discipline.
As Kim said, SKIMS isn’t just shapewear but solutions-driven apparel for real bodies and real lives. And the market valued that mission at $4 billion in just four years, with total funding of $670 million raised across four rounds validating the business model that combined Kim’s creative vision and marketing reach with operational excellence from experienced fashion entrepreneurs proving that when celebrities solve real problems with genuine involvement, billion-dollar outcomes are possible.
