Victoria’s Secret completes acquisition of Adore Me
Victoria's Secret said on Tuesday that it has completed the acquisition of digitally-native intimates brand Adore Me, supporting the lingerie giant’s goal to become the world’s leading retailer of intimate apparel.
As part of the deal, first announced in November, Victoria's Secret has acquired 100 percent of Adore Me, which is expected to create meaningful sales and profit for the company in 2023.
In particular, Victoria's Secret said it expects to leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and Pink customer shopping experience and modernise its digital platform. Together, the companies will also aim to lead the global intimates category forward in a more inclusive, tech-forward, and sustainable way.
“From the beginning, we evaluated Adore Me as a two for one opportunity – a technology-led, digital-first innovator in the intimates category and a highly efficient, growing and profitable standalone business model. I am thrilled with the swift completion of the acquisition and excited to welcome the entire Adore Me team into the VS&Co family,” said Martin Waters, CEO, Victoria’s Secret & Co.
Founded in 2011, New York-based Adore Me is an online-only intimates brand that counts 1.2 million active customers. It generated an estimated $250 million of profitable sales in their most recently completed fiscal year 2022.
The company has pioneered a home try-on commerce service, a series of innovation-driven products, and a mission of making sustainable shopping accessible to all, becoming the first Certified B Corporation intimate apparel brand in the U.S.
Waters concluded: “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.”
In 2022, Victoria's Secret also took a minority stake in U.S. swimwear brand, Frankies Bikinis.
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