Kim Kardashian's SKIMS Valuation: The TRUTH Behind Her Billion Dollar Empire EXPOSED

Stateside Gossip

Kim Kardashian and her shapewear brand SKIMS are always making headlines, but what's the real story behind its staggering valuation? In this deep dive, Stateside Gossip exposes the truth behind Kim Kardashian's SKIMS valuation, investigating how her brand became a multi-billion dollar empire. We'll break down the financial claims, uncover the business strategies, and reveal if Kim K's entrepreneurial success is truly as impressive as it seems.From celebrity net worth discussions to the latest Kardashian empire updates, this video delves into the intersection of Hollywood A-listers, fashion breakdowns, and business success. Get the inside scoop on celebrity lifestyle, potential celebrity scandals, and the impact of influencers in US celeb culture. Join us for the most compelling entertainment news and all the juicy rumors surrounding Kim Kardashian news and reality TV drama.

Transcript

00:00okay can we just dive right into the chaos because the news about kim kardashian's skims valuation

00:06dropped and i mean five billion dollars billion it's a staggering number it's insane and it just

00:14polarized everyone the first question that pops up is is this some kind of financial deception

00:19or is she a legitimate genius well yeah how can a company that's only what a few years old be worth

00:25that much my first thought was just you know skepticism is that even believable today and

00:30that's the core of it isn't it because when we really dug into the reports for this we found

00:34something pretty wild oh yeah kim is actually telling us that it's not worth five billion today

00:39exactly but the message was so so slickly packaged that basically everyone the public even a lot of

00:46the media they just completely missed it it's a total master class in what some are calling uh

00:51mischievous business the headline grabbed you right the huge number of course but the context

00:56the really essential disclosure just got buried so as we walk you through this we really want you to

01:02think about it is this just smart business you know the way you have to talk to get capital

01:07or is this a calculated trick for everyone just tuning in you're listening to the latest celebrity

01:14gossip and our mission today is to dissect those skims valuation reports and find the exact

01:21words that explain this whole thing and the uh the first thing you find the most important piece

01:27is that this valuation isn't about what the brand is worth right now right this five billion dollar

01:32number came out right after a huge new funding round and get this it was led by goldman sachs

01:40alternatives okay so that's the first clue that's serious institutional money they're not just throwing

01:45cash around not at all and what that tells you is that this is a bet on a very serious business model

01:51and the reason goldman sachs is betting on it is because this number it's not a current valuation

01:55it's the brand's what projected worth that's the term projected worth yeah that's the little piece

02:00of fine print that got lost in all the noise so they're buying into the future exactly when you invest

02:05in a growth company like skims you're not buying last year's performance you're buying what you think

02:11it will be and that projection i mean is that over like 10 years it could be yeah but for a brand

02:16moving this fast it's probably a much tighter timeline maybe uh 18 to 24 months wait okay let's

02:23pause on that for a second because if it's worth a lot less than five billion right now isn't it

02:29i don't know kind of risky to be throwing that number out there ethically i mean that's a great

02:34question but legally no the disclosure is right there it's tied directly to the expansion plans

02:40for a huge firm like goldman sachs that projection is everything it's the fuel you can't go to them

02:45and say hey we're doing pretty good right now i should show them the ceiling not the floor you have

02:49to show them exponential growth the five billion is the target it's what justifies them injecting all

02:55that cash okay that makes sense it's the blueprint so what's in that blueprint what is stims actually

03:00promising to do to hit that target the documents are super clear about it the main goal is to go from

03:06just an e-commerce brand to a global omni channel retail brand omni channel that sounds like a big

03:13corporate buzzword let's break that down it basically means being everywhere a seamless experience for the

03:19customer no matter how they shop so on the website on the app walking into a physical store it's all

03:25connected it's all the same skims experience they want to be literally everywhere you look so this is

03:30about way more than just clicking buy on your phone they're moving into the real world what are the

03:36specifics the plans are really ambitious they're talking about a huge increase in net sales launching

03:42new product lines you know the usual stuff right but the headline is the physical stores they're planning

03:48to open 18 stores across the u.s and mexico 18 wow and then they have their eyes on other spanish-speaking

03:55markets right after that so that's the foundation you need the physical footprint to even dream of a

04:00five billion dollar future but you know stores are empty without customers and not just any customers

04:07customers with money exactly so how do you lock in those future sales this is where the marketing

04:12genius really comes in i think oh absolutely the financial plan is the frame but acquiring those high

04:18net worth customers is the engine that makes the whole thing go and everyone assumed the big marketing play

04:23was the wmba and nba deals right i did too but the reports pointed to a totally different collaboration

04:30as being the uh the real linchpin for their future growth and that collaboration is with nara and lucky

04:37bluesmith yes now if you're not deep in the like the ultra niche high fashion world you might think

04:45but this is a massive strategic move it's a completely different demographic lucky bluesmith has been a face

04:51for brands like ralph lauren for years these are legacy luxury brands they operate in a world that is

04:56so expensive and exclusive they don't even really advertise in a traditional way right we're talking

05:01about people who are not going to be swayed by a banner ad during a basketball game they're influenced

05:06by what exclusivity cultural capital and that's where nara smith comes in she's built this incredible brand

05:12for herself as a quote trad wife it's the most bizarre and fascinating thing she has millions of followers

05:19watching her make everything from scratch i'm talking homemade pretzels homemade pepsi cola she

05:24made her own birthday candles and cereal cereal but she does it all while she's wearing like runway couture

05:31and using cookware that costs more than my car it's this perfect blend of high-end domestic life and pure

05:37luxury so by partnering with them on a sleepwear line skims gets a direct line to an audience that nobody

05:44else can advertise to that's the genius of it the reports actually contrasted with the wnba deal the

05:50wnba has mass visibility its aspiration it puts the brand in front of millions of eyes a constant reminder

05:56to buy skims but the smith collaboration that's about exclusivity that's about immediate sales from

06:01the ultra wealthy the rationale and the source material for why this is a bigger deal was just

06:05it was so compelling it all comes down to their brand power they signal this very specific high-end

06:11unique taste i mean look at their kids names bibsaloo and rumble honeysmith you can't make this stuff up

06:17it's all part of this very carefully built exclusive world and for their followers their wealthy

06:23followers they don't need to see an ad no the fact that nara and lucky blue are wearing a limited edition

06:28skims piece is all it takes that alone is enough to sell out the line and build loyalty in a market

06:34segment that is incredibly lucrative so the whole strategy is layered it's brilliant first you use

06:41the projected worth trick to get investors like goldman sachs on board step one then you build

06:46the infrastructure the omni channel the 18 stores step two and then you lock in the high profit

06:52customers you need to make it all real by using the most niche most influential collaborators you can

06:58possibly find and that's exactly what she did she used a totally legal business technique talking about

07:03future value and then backed it up with a marketing plan that actually secures that future value

07:08this partnership might be the smartest thing skims has done in years so this whole five billion dollar

07:13story it's not really about a lie it's about a very very carefully laid out player for the future

07:19the real secret isn't just selling shapewear it's about understanding that to get that big you have

07:26to capture a market that other brands can't even reach it's this perfect marriage of financial

07:30storytelling and hyper-targeted marketing but it leaves us with a question for you yeah in this world of high

07:36finance of aggressive growth is declaring a projected worth a number that isn't true today

07:43is that mischievous or is that just what it takes to play ball at the highest level we want to know

07:47what you think and for more deep dives into the stories behind the headlines make sure you subscribe

07:51to stateside gossip wherever you get your podcasts we'll see you next time

08:04you

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