The lingerie giant will pay $400 million in cash up front for the direct-to-consumer brand in an effort to improve its digital offering.
“Adore Me will also serve as a growth vehicle” for Victoria’s Secret, the chain said Tuesday morning in a press release about the deal. In addition to the $400 million payment, the terms of the acquisition includes “further cash consideration,” a part of which will be based on Adore Me’s performance and growth targets.
The deal, slated to close in January, comes at the heels of several acquisitions in the intimates space this year, including ThirdLove’s purchase of Kit Undergarments in April and Kimberly-Clark’s acquisition of period underwear brand Thinx in February.
“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,” Victoria’s Secret chief executive Martin Waters said in a statement.
The company highlights Adore Me’s home try-on service, a personalised box of items sent to customers directly. For $10, shoppers can keep what they like and send back the rest.
Victoria’s Secret has seen sales slip in recent months, a trend it attributed to macroeconomic factors. In August, the company updated its full-year forecast to decrease in the mid- to high- single digits percentage-wise compared to $6.8 billion in 2021.
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Victoria’s Secret Sales Fall But Beat Wall Street Estimates
The lingerie brand reported net sales of $1.5 billion for the first quarter of 2022, a decrease of 4.5 percent compared to the same period the year prior.
