Skims

Executive Summary

Skims is a fast-growing clothing business that focuses on inclusive undergarments and relaxed home wear. It has successfully taken customers away from existing big players by using a website-first sales strategy that targets younger shoppers born between 1981 and 2012. The business makes about $750 million in yearly sales and keeps a solid 11.3% of that as pure profit. This performance backs up its current $4 billion estimated price tag as a private company. A major strength is its huge amount of free publicity and its status as a high-end brand. It has grown by opening shops inside luxury department stores and launching new lines for men. However, the investment holds a risk rating of 45 out of 100 because the clothing world is crowded and the business relies heavily on the fame of Kim Kardashian. Future growth depends on making the company valuable on its own without needing a celebrity name while also selling more products in other countries. As a major example of how the retail industry is doing, a move to sell stock to the public will show if investors want to buy into celebrity-started billion-dollar startups during an unstable economy. Moving from a private challenger to a public company depends on selling its inventory quickly and keeping shoppers coming back as it adds more types of products.