Victoria’s Secret & Co. (VS&Co) now owns Adore Me, Inc. The company said it acquired the digitally-native intimates brand to “move the category forward in a more inclusive, tech-forward, and sustainable way.”
The company announced the acquisition in early November, signing a definitive agreement to purchase Adore Me for a reported $400 million.
Adore Me was founded more than a decade ago, becoming well known for its proprietary “Home Try-On” platform technology and inclusive sizing. The start-up serves over 1.2 million active users and offers monthly subscription options. The company generated an estimated $250 million of profitable sales in its most recently completed fiscal year 2022.
According to Victoria’s Secret, the acquisition will result in meaningful sales and profit growth as it taps into Adore Me’s tech expertise to elevate the shopping experience and modernize VS&Co’s digital platform.
“From the beginning, we evaluated Adore Me as a two for one opportunity — a technology-led, digital-first innovator in the intimates category and a highly efficient, growing and profitable standalone business model,” said Martin Waters, CEO, Victoria’s Secret. “I am thrilled with the swift completion of the acquisition and excited to welcome the entire Adore Me team into the VS&Co family.”
Waters added that the acquisition will help both companies deliver improved, elevated, and differentiated experiences.
“This acquisition will be a significant accelerant as we pivot toward growth and modernize the foundation of our company with technology at the forefront of everything we do,” he said. “From a financial point of view, we firmly believe the standalone Adore Me business can continue their industry-leading sales growth at operating margin rates that are similar or accretive to the VS&Co operating model. We view this acquisition as a win-win opportunity to drive long-term, sustainable shareholder value.”
Buying Into Innovation
In a recent exclusive interview with Adore Me’s Ranjan Roy, vice president of strategy, he highlighted the strides made in implementing digital innovation. The company said it was leveraging artificial intelligence to streamline copywriting processes and free up employees to take on more profit-building tasks.
“Natural language generation technology is the future of retail, and we want to be ahead of the curve,” Roy told RIS. “AI-generated content should help you with the boring, structured stuff. A writer who wants to work on more creative endeavors should have the time to do that, and not have to worry about the day-to-day, monotonous work.”
Victoria’s Secret is no stranger to innovation, and shares in a similar culture to Adore Me, working toward more inclusivity and an increasingly varied assortment. In May 2022, for example, Victoria’s Secret launched VS&Co-Lab, a digital platform aimed at working with women or minority-owned or -led businesses.