It seems like just yesterday we were talking about Adore Me, the digital-native lingerie brand that made personalized shopping feel accessible and fun. Remember their model? You'd fill out a style quiz, and voilà, curated pieces would arrive at your door. It was a clever approach, especially when Victoria's Secret & Co. acquired them in 2023 for a cool $400 million, aiming to inject some of that digital savvy and appeal to a younger demographic into their own brand.
But as we've seen time and again in the fast-paced world of retail, strategies evolve. Recently, Victoria's Secret announced a significant shift for Adore Me. The subscription service, a cornerstone of Adore Me's original appeal, has been phased out. Instead, the brand is transitioning to a more general loyalty program. This move, alongside the closure of Adore Me's distribution center in Mexico, signals a broader strategic realignment within the parent company.
It's interesting to note that this isn't the only digital venture under scrutiny. The company is also taking a strategic look at DailyLook, another acquisition that offered a "stylist-curated clothing box" subscription. This suggests a desire to hone in on core strengths and perhaps streamline operations.
Financially, Victoria's Secret is navigating a complex landscape. While they reported a nearly 8% increase in net sales for the fourth quarter, reaching $2.27 billion, and project continued growth into 2026, there are underlying pressures. Operating income saw a dip of 14.5%, and net profit declined by 5% in the same quarter. Analysts, however, seem to view the evaluation of DailyLook as a positive step, allowing the company to focus more intently on its primary brands.
Meanwhile, Victoria's Secret is also making moves to capture the younger market in other ways. They're planning to open a long-term pop-up store in New York City's SoHo district later this year, dedicated solely to their Pink sub-brand. This is a direct response to observed growth in Pink's in-store sales penetration, aiming to test the waters for a more independent Pink presence, though the company is cautious about committing to a full brand separation just yet.
The acquisition of Adore Me was initially driven by its digital prowess and its connection with a younger audience, with the goal of modernizing Victoria's Secret's customer experience and digital platforms. While the subscription model is changing, the core of Adore Me – its focus on accessible pricing (often half that of comparable Victoria's Secret items) and personalized shopping – seems to be the foundation they're building upon, albeit in a new structure. It’s a reminder that even successful models need to adapt to stay relevant.
