Victoria’s Secret is set to acquire direct-to-consumer (DTC) lingerie brand Adore Me for $400 million in cash.
In addition, the terms of the acquisition include a “further cash consideration” clause, which may generate extra windfall based on Adore Me’s performance and growth targets.
“I’m absolutely delighted to be announcing this transaction, welcoming Adore Me into the VS&Co family. Adore Me is a technology-led, digital-first innovator in the intimates category that will help us bring differentiated experiences to Victoria’s Secret and PINK customers,” said Martin Waters, CEO of Victoria’s Secret & Co.
According to Victoria’s Secret, Adore Me will serve as a growth vehicle for the company as the DTC brand will be able to provide access to a consumer base that is complementary to VS&Co’s already existing clientele.
“This acquisition will be a significant accelerant as we pivot toward growth and modernize the foundation of our company with an entrepreneurial mindset that puts technology at the forefront of everything we do. In partnering with the incredible team at Adore Me, we will move to the future much faster,” Waters added.
To date, Adore Me serves more than 1.2 million active customers and is noted to be powered by a sophisticated proprietary technology platform that offers highly differentiated customer experiences, including “Home Try-On” and monthly subscription options.
Adore Me’s “Home Try-On” has become an attractive solution for Victoria’s Secret as the DTC brand’s personalized experience has resulted in a strong customer retention rate.
“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,” said Morgan Hermand, founder and CEO of Adore Me.
Adore Me has been recognized for its continuous efforts toward offering environmentally-conscious inclusive sizes.
The acquisition of Adore Me is expected to close by the end of January 2023.
Photo Credit: Adore Me