Kanye West is going to profit handsomely from Kim Kardashian’s Skims, which has been valued at $4 billion due to his 5% interest in the lucrative shapewear firm.Forbes reported on West’s investment in Skims in 2022.
Kardashian co-founded the clothing company four years ago, and it has since become a unicorn four times over. According to the fresh York Times, the company’s latest valuation came after it secured $270 million in a fresh investment round, up from the $3.2 billion valuation investors gave it last year.
“It has grown quickly, and we’re so proud of that,” Kardashian told the Times. “We’ve had a really good flow of product launches.”
When the company first went public in 2019, it immediately made $2 million in sales. The brand began with shapewear but has since expanded to include swimsuits and loungewear.
She originally named the brand Kimono, but changed it to Skims amid severe backlash over the cultural appropriation of the word, which referred to a traditional Japanese form of clothing.
West, who was once a billionaire, now has a stated net worth of $400 million. His present net worth is also accounted for by his stake in Skims.The singer, entrepreneur, and one of the few richest self-made Blacks in American history rocketed to prominence in 2004 with the release of his album The College Dropout. He has since become a celebrated music icon.
Until he moved into entrepreneurship, his early revenues came from his songs, concerts, and royalties. It was previously stated that West earns money from his $110 million music collection. His actual net worth became a source of contention. Bloomberg estimated his net worth to be $6.6 billion, while Forbes estimated his net worth to be $1.6 billion. According to Forbes, West, who has officially changed his name to Ye, was kicked out of the billionaires’ club after his net worth dipped below $1 billion. Following a string of provocative tweets, German sneaker company Adidas severed ties with him.
“Losing Adidas was the final nail in Ye’s net-worth coffin”, says Forbes, adding: “Now the road has ended.”
What remains of the rapper’s financial empire is his “real estate, cash, his music catalogue, and a 5% stake in ex-wife Kim Kardashian’s shapewear firm, Skims.”