One way to think about this is to compare Skims with Lululemon, a company that is somewhat comparable. It too has reinvented a once mundane category \u2014 gym gear, in this case \u2014 and given it a sleek new look. Yet Lululemon\u2019s stock, after a difficult year, trades at less than twice this year\u2019s sales. Skims, on five times, carries a 150 per cent premium. <\/p>\n
Growth, not celebrity, explains some of that. Back in 2012, Lululemon had the same $1bn in annual sales that Skims has now; over five years it grew at an average 22 per cent annual rate. Assuming Skims follows a similar path, it would hit about $2.7bn in revenue by 2030. Measure both companies\u2019 enterprise values as a multiple of that year\u2019s sales, and the Skims premium compresses to roughly a quarter, equivalent to around $1bn of value.\u00a0<\/p>\n
Is she worth it? Kardashian\u2019s reach \u2014 with 354mn Instagram followers \u2014 is something most brands would torch their marketing budgets for. While the financials for Skims are not publicly available, its founder\u2019s clout would presumably translate into lower customer acquisition costs and higher margins. <\/p>\n
Brands backed by mega celebrities also have a better chance of stretching into new categories, as Gwyneth Paltrow\u2019s candles-to-clothing Goop empire testifies. Kardashian\u2019s skincare experiment SKKN, was bought back<\/a> earlier this year by Skims, which plans to launch its own beauty line-up. And her halo effect may help attract high-profile potential partners: Nike launched an athleisurewear partnership with Skims<\/a> earlier this year.<\/p>\n Other celebrity brands have also translated their founder\u2019s fame into rich valuations, though not always with long term success. Hailey Bieber \u2014 fashion model and wife of Justin \u2014 sold skincare brand rhode to e.l.f. Beauty<\/a> for up to $1bn on $212mn of revenue. But Jessica Alba\u2019s Honest Co has slid from a $1.4bn IPO valuation to under $300mn.\u00a0<\/p>\n Fame is fickle, as are consumers. Nonetheless, for a towering brand such as Kardashian\u2019s, a $1bn premium is probably worth it. Over time, the recipe for a durable celebrity brand may be one in which the product\u2019s own reputation outgrows that of the celebrity; think of Nike Air Jordan, which no longer sells purely because of the association with its namesake. Skims\u2019 challenge is to inch in that direction.<\/p>\n![\"Line](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/https:\/\/d6c748xw2pzm8.cloudfront.net\/prod\/dc150b70-c170-11f0-b31e-4115bdd8613a-standard.png\")
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