Will Adore Me bring love to Victoria’s Secret?
Victoria’s Secret & Co. (VS&Co.) has agreed to buy Adore Me, the digital-first intimates brands, for $400 million. The acquisition is expected to provide a technology boost, a new growth vehicle and perhaps some goodwill.
On the technology side, Adore Me is expected to bring its “Home Try-On” and monthly subscription service to the Victoria’s Secret and PINK brands. With a $20 styling fee, Adore Me subscribers receive four to seven lingerie and loungewear items monthly and only pay for what they keep.
Adore Me is also expected to accelerate the modernization of VS&Co’s digital platform to bring “technology to the forefront of everything we do.”
As a growth vehicle, Adore Me, with sales forecast to reach $240 million in 2022, is expected to provide a platform to target the value segment where VS&Co currently doesn’t participate.
With only six stores, Adore Me’s brick and mortar expansion could be significantly sped up. Victoria’s Secret has also made adding new brands to its portfolio, organically or through investments, a priority to “enhance its customer and category reach and access new capabilities.” In March, Victoria’s Secret acquired a minority stake in Los Angeles-based swimwear brand Frankies Bikinis and in May it introduced a new platform called VS&Co-Lab on its website that features third-party brands.
Founded in 2011, Adore Me is profitable and has a “young, diverse, and inclusive customer base with over 1.2 million active customers,” according to VS&Co. Beyond value pricing, Adore Me stands out as a leader in extended sizes, offering 77 sizes. Adore Me is also the only B Corp Certified lingerie brand based in the U.S.
Adore Me’s affiliation may also help with Victoria’s Secret’s awkward transition from a brand built around sex appeal to one embracing inclusivity and women’s empowerment.
Morgan Hermand, Adore Me’s founder and CEO who will continue to lead the brand, said in a statement, “We have significantly grown our business over the past decade, and are excited to bring our technology, purchase experiences, inclusive assortment, brand and team to join the next phase of Victoria’s Secret’s growth and customer journey transformation.”
- Victoria’s Secret & Co. Signs Definitive Agreement to Acquire Adore Me, Inc. – Victoria’s Secret & Co.
- Acquisition of Adore Me Investor Presentation – Victoria’s Secret & Co.
- Victoria’s Secret & Co. Presents Strategic Growth Plan Designed to Strengthen the Core, Ignite Growth and Transform the Foundation – Victoria’s Secret & Co.
- Victoria’s Secret acquires Adore Me for $400 million to fuel comeback – Vogue Business
- Victoria’s Secret Acquires Adore Me for $400 Million – WWD
- Victoria’s Secret to Buy Lingerie Brand Adore Me for $400 Million – The Wall Street Journal
- Victoria’s Secret to buy online startup Adore Me for $400 million – CNBC
- Will swimwear become Victoria’s Secret weapon? – RetailWire
DISCUSSION QUESTIONS: Is the Adore Me acquisition a good fit for Victoria’s Secret & Co.? Will the acquisition help assist in Victoria’s Secret’s image makeover?