Kim Kardashian's SKIMS raises $154M at $1.6B valuation: NYT
Yahoo Finance's Allie Canal joined Yahoo Finance Live to break down how Kim Kardashian's SKIMS raised $154M at $1.6M valuation and what this means for the brand.
Video transcript
EMILY MCCORMICK: We're keeping Yahoo Finance's Alexandra Canal with us now to discuss Skims, Kim Kardashian's line of shapewear. "The New York Times" reporting today that the company just raised $154 million at a $1.6 billion valuation. So Allie, it sounds like even though "Keeping Up With the Kardashians" is ending this year, the Kardashian empire just keeps growing.
ALEXANDRA CANAL: Oh, it's growing and growing. And Kim Kardashian, man, I'm very happy about this. We need more ladies on the billionaire list. We did get news from Forbes earlier this week that she made this list for the first time. But then "The New York Times" reporting that she might actually be higher than originally anticipated. And you mentioned $154 million raised to value the company at $1.6 billion. That's a lot higher than Forbes had originally estimated. They had sources saying that the company was worth upwards of $500 million. So they were pretty conservative when determining Kardashian's majority stake. But $1.6 billion, I mean, that means it's a lot of cash.
And that's not her only business. She also owns KKW Beauty. She sold a 20% stake in that company to COTY, which gave her $200 million in cash. She currently owns 72% of the company, which comes out to around $500 million. And then she has her other investments, her real estate deal, supplemental income from "Keeping Up With the Kardashians." I can't believe I'm referring to a reality show as supplemental income, but here we are. Despite the fact that that show is ending soon, the family did sign a multiyear deal with Hulu. So the well is not running dry when it comes to the Kardashians.
SEANA SMITH: Allie, any idea how that compares with "Keeping Up With the Kardashians"? Because that was something that I think was brought up a lot when people saw her on that list. And now that they're ending that, yes, they do have this other multimillion dollar deal, but what that means for her future valuation.
ALEXANDRA CANAL: I think it's kind of a drop in the bucket. It seems like the bulk of her income comes from her own various businesses that she's created herself. And she's not stopping here. She filed multiple trademarks with the US Patent Office for a possible new skincare line called SKNN by Kim. That's S-K-K-N. This would directly compete with her little sister, Kylie Jenner, who also has a skincare line, Kylie Skin. But she filed under multiple different categories, not only skincare, but also nail care, fragrances, household products, vitamin supplements. So there's a lot of different ways that she can go with this.
And I really think she's striking while the iron's hot. And I think overall, people underestimate Kim K. I mean, they never have really taken her seriously in her business endeavors. But now I don't think you can do that. I mean she has a company that's worth well over $1 billion. And Kim Kardashian, if you're watching right now, we need to get you on Yahoo Finance. We got to know your secrets. We gotta talk about your businesses, what's coming up next. So that's my pitch for Kim K.
SEANA SMITH: I like the pitch. Allie, sorry, I'm, like, jumping in here real quick. I mean, it was a pretty good retort by her because she was saying it's not too bad to be valued over a billion dollars for a girl with no talent, so that was good.
ALEXANDRA CANAL: Mm, love it. Love it, baby. I got chills.
EMILY MCCORMICK: Maybe we'll have her on Yahoo Finance. But Alexandra Canal, thank you so much.
