Riding the Wave: A Guide to Investing in SKIMS

Published in Stocks and Investing on Thursday, August 21st 2025 at 19:12 GMT by The Motley Fool
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The meteoric rise of SKIMS has captivated the fashion world and sparked considerable interest among investors. Once a whisper amongst industry insiders, the possibility of owning a piece of this billion-dollar brand is now a tangible reality – albeit through indirect means. While a traditional IPO (Initial Public Offering) hasn't materialized yet, several avenues exist for retail investors to participate in SKIMS’ continued growth story. This article breaks down how you can potentially invest in SKIMS, the current landscape, and what to consider before diving in.

Understanding SKIMS: More Than Just Body Shapes

Before exploring investment options, it's crucial to understand what makes SKIMS so successful. Founded by Kim Kardashian West in 2019, the brand quickly disrupted the shapewear market with its focus on inclusivity, comfort, and innovative design. Beyond shapewear, SKIMS has expanded into loungewear, swimwear, and underwear, consistently topping sales charts and garnering a massive social media following. The company’s valuation currently sits around $6 billion, making it one of the most valuable privately held fashion brands globally. This success is driven by strong brand recognition, a loyal customer base, and Kardashian's significant influence on consumer trends.

The Current Investment Landscape: No Direct Stock Purchase… Yet.

As of late 2023/early 2024 (the time the original article was written), SKIMS remains privately held. This means there’s no publicly traded stock symbol to buy directly. However, several avenues offer potential exposure to the company's growth:

Private Equity and Venture Capital Funds: The most common way for everyday investors to indirectly invest in private companies like SKIMS is through funds that specialize in these assets. These funds often require substantial minimum investments (often hundreds of thousands or even millions of dollars), making them inaccessible to many retail investors. However, some platforms are beginning to offer fractional shares in private equity funds, potentially lowering the barrier to entry.
Secondary Markets: Secondary markets allow individuals who already own shares in private companies to sell those shares to other investors. These markets can be volatile and often involve complex legal agreements. While they provide a potential avenue for investment, due diligence is paramount. Platforms like Forge Global facilitate these transactions but come with their own risks and fees.
SKIMS’ Parent Company (Direct Holdings): SKIMS is owned by Direct Holdings LLC, which also holds stakes in other Kardashian-Jenner family businesses. While not a direct investment in SKIMS itself, owning shares in the parent company could provide some exposure to its portfolio of assets. However, this option is even more limited and complex than secondary markets.
Publicly Traded Companies with Exposure: Some publicly traded companies have relationships or partnerships with SKIMS that could benefit from its success. For example, if SKIMS utilizes a specific manufacturer or distributor, the performance of those companies might be positively impacted by SKIMS’ growth. Identifying these indirect exposure opportunities requires careful research and analysis.
Future IPO (Initial Public Offering): The most straightforward way for retail investors to gain access to SKIMS stock would be through an IPO. While there's no confirmed timeline, the possibility remains a significant driver of investor interest. An IPO would allow anyone with a brokerage account to purchase shares directly.

Navigating the Risks and Considerations:

Investing in private companies or indirect exposure opportunities carries inherent risks:

Illiquidity: Shares in private companies are notoriously illiquid. Selling them can be difficult and may require significant time and effort, especially on secondary markets.
Valuation Risk: Private company valuations are often based on estimates and projections, which can be subjective and prone to error. The actual value of SKIMS could differ significantly from its current valuation.
Limited Information: Unlike publicly traded companies, private companies have less stringent reporting requirements. This means investors have access to less information about their financial performance and operations.
Market Volatility: Even indirect exposure through public companies is subject to market fluctuations and broader economic trends.
Fees & Expenses: Investing in private equity funds or secondary markets often involves high fees and expenses, which can erode returns. Due Diligence is Key:

Before investing in any SKIMS-related opportunity, thorough due diligence is essential. This includes:

Understanding the Investment Vehicle: Carefully review the terms and conditions of any fund or platform you’re considering.
Assessing Risk Tolerance: Determine your comfort level with illiquidity and potential losses.
Researching the Underlying Company: While information may be limited, gather as much data as possible about SKIMS' financial performance, market position, and competitive landscape.
Seeking Professional Advice: Consult with a qualified financial advisor to discuss your investment goals and risk tolerance.

The Future of SKIMS Investment Opportunities:

While direct ownership remains elusive for now, the potential for an IPO looms large. The continued success of SKIMS, coupled with increasing investor demand, could eventually lead to a public offering. Until then, indirect exposure through private equity funds or publicly traded companies offers limited opportunities, but requires careful consideration and a high degree of risk tolerance. Staying informed about industry news and developments will be crucial for anyone hoping to capitalize on the SKIMS phenomenon. The brand’s continued growth trajectory suggests that investment opportunities, in some form, are likely to emerge in the future – making it a compelling story to watch within the world of fashion and finance.

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Riding the Wave: A Guide to Investing in SKIMS