Victoria's Secret acquires Adore Me
U.S. lingerie giant Victoria's Secret announced on Tuesday plans to acquire digitally-native intimates brand Adore Me, as the company makes further inroads in the online undergarment market.
Victoria's Secret said its expects to leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and Pink customer shopping experience and modernise its digital platform. The company said Adore Me will also serve as a "growth vehicle"... "providing access to a consumer that is complementary" to its current customer base.
The transaction includes an initial upfront $400 million cash payment and further cash consideration, a portion of which is fixed and a portion of which is based on the performance of Adore Me and achievement of specified growth and synergy targets over a two-year period, according to a press release.
“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, Victoria’s Secret & Co.
“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.”
Founded in 2011, New York-based Adore Me is a online-only intimates brand that counts 1.2 million active customers. It is powered by a proprietary technology platform with differentiated customer experiences including 'Home Try-On' and monthly subscription options, and offers expanded sizing across its products. It is also a B Corp-certified company.
“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.
Victoria's Secret's acquisition of Adore Me comes several months after the lingerie giant said it had a taken a minority stake in U.S. swimwear brand, Frankies Bikinis.
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