Pink Cashmere was the first single from Prince's first compilation albums The Hits 1 and The Hits 2, taken specifically from The Hits 1 (also included as the first disc of The Hits / The B-Sides).
It was released two weeks before the album in the USA, Germany and Japan only. The b-side, Soft And Wet, was also taken from The Hits 1 (although originally taken from Prince's first album For You and released as his first single, which likely prompted its inclusion as the b-side).
Some versions also included the single versions of minor hits which were not included on The Hits 1 or The Hits 2, so the two-disc single could be considered a companion to those albums (these tracks also showed up on the single Controversy, which was released in territories Pink Cashmere was not; the cover art also closely matched the Controversy single).
The single reached number 50 on the US Billboard Hot 100 Chart, and number 14 on the Billboard Hot R&B Chart.
The single is the first release credited only to Prince since 1990's New Power Generation single; all releases in the intervening time were credited to Prince and the New Power Generation.
While likely only coincidental, it is noteworthy that Pink Cashmere by Prince was released on the same day the first 'solo' release by the New Power Generation, Gold Nigga went on sale at Act II tourdates, highlighting the idea that Prince and the New Power Generation were now separate entities (which was, in reality, far from true).