Victoria’s Secret acquires Adore Me
Victoria’s Secret & Co. has acquired digitally-native intimates brand Adore Me to serve as an 'important long-term growth vehicle".
Founded in 2011 as an online lingerie startup, Adore Me has evolved into a direct-to-consumer lingerie and apparel brand, serving women of "all sizes and budgets". The brand is expected to generate $250 million of profitable sales in FY22.
The acquisition will create "meaningful sales and profit upside opportunities" for VS&Co, including the opportunity to leverage Adore Me’s expertise and technology to improve the Victoria’s Secret and PINK customer shopping experience and accelerate the modernisation of the company's digital platform.
Martin Waters, Victoria’s Secret & Co. CEO, said: “In Adore Me, we have acquired a business and a team that will help us deliver improved, elevated and differentiated experiences for Victoria’s Secret and PINK customers. This acquisition will be a significant accelerant as we pivot toward growth and modernize the foundation of our company with technology at the forefront of everything we do.
"From a financial point of view, we firmly believe the standalone Adore Me business can continue their industry-leading sales growth at operating margin rates that are similar or accretive to the VS&Co operating model. We view this acquisition as a win-win opportunity to drive long-term, sustainable shareholder value.”