The lingerie giant notes the high potential of Adore Me.
Victoria's Secret has announced the purchase of DTC (Direct-to-Consumer) brand Adore Me for $400 million. The deal is expected to close in January 2023 after approval from the company's board of directors and regulatory approvals.
"This acquisition will be a significant acceleration as we focus on growing and modernizing the fundamentals of our company with an entrepreneurial mindset that puts technology at the forefront of everything we do," VIctoria's Secret commented.
The lingerie giant notes the high potential of Adore Me. The inclusive brand provides customers with new technology, "home fitting," monthly subscriptions and premium status. The company believes the takeover will improve the shopping experience and accelerate the development of its own digital platform.
Victoria's Secret has faced financial problems in recent years and has changed its marketing strategy away from its usual positioning. Many DTC brands, including Adore Me, Aerie, Lively and ThirdLove, have significantly increased their market share during this time.
The acquisition of Adore Me was preceded by Victoria's Secret's acquisition of a minority stake in the Frankies Bikinis business as well as For Love & Lemons.