Victoria’s Secret to Acquire Adore Me for $400M
Victoria’s Secret & Co. said Tuesday it has signed a definitive agreement to acquire Adore Me, Inc., a lingerie startup known for its wide array of sizes, for $400 million in cash, reports CNBC. The move comes as Victoria’s Secret aims to become more inclusive and increase the diversity of its products. The deal is expected to close by the end of January, subject to customary closing conditions and regulatory clearances.
Adore Me, founded in 2011, serves more than 1.2 million active customers and is powered by a proprietary technology platform that features “Home Try-On” and monthly subscription options. Adore Me has long been a category leader in extended sizes.
Total Retail's Take: The intimates industry is seeing more consolidation since Victoria’s Secret has accelerated its turnaround strategy. The retailer is taking on the direct-to-consumer (D-to-C) lingerie brand sector that grew in popularity while its own brand image, and profits, faltered by buying some of its competition. This deal will create significant upside for Victoria’s Secret, including the opportunity to leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and PINK customer shopping experience and accelerate the modernization of VS&Co’s digital platform, a company press release states.
"In partnering with the incredible team at Adore Me, we will move to the future much faster,” said Martin Waters, CEO, Victoria’s Secret & Co., perhaps alluding to the slow recovery of the iconic brand thus far. Known as an industry leader in extended sizes and a B Corp-certified organization, Adore Me will also help Victoria's Secret's to meet its inclusivity and sustainability goals. Conversely, Adore Me will benefit from the financial backing of a larger company that should fuel the D-to-C brand's rapid growth.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.