Founded by CEO Morgan Hermand-Waiche a decade ago, the New York innerwear subscription firm is America’s only intimates B Corp. Adore Me received the certification in September following a three-year sustainability plan to revamp its ESG profile. Hermand-Waiche, who started looking at the company’s business model and supply chain in 2019, will remain in charge of Adore Me as staff and operations integrate with VS&Co.
The acquisition helps VS&Co. move on from its sex-sells image and embrace a modern, size inclusive business model that’s more in-tune with today’s customer. That shift began in June 2021 when the company said goodbye to its signature Victoria’s Secret Angels—and its fashion show—after a nearly 23-year run.
The company embarked on a new path with the VS Collective, a partnership platform featuring an inclusive group of women influencers representing the brand’s updated image. The inaugural class include U.S. soccer champ Megan Rapinoe, British model and body activist Paloma Elsesser, Chinese skier Eileen Gu, actress Priyanka Chopra and Brazilian model Valentina Sampaio, the brand’s first transgender model.
Last summer, the company also launched VS&Co-Lab, a microsite curating third-party, women-owned brands on VictoriasSecret.com.
A few months later in August, Victoria’s Secret separated from L Brands via a spinoff to become a standalone firm under the VS&Co. moniker. It began trading on the New York Stock Exchange on Aug. 2, 2021.
Adore Me isn’t the VS&Co.’s first foray outside of the Victoria’s Secret brand since becoming a standalone firm. In March 2021, VS&Co. made an $18 million investment in Los Angeles-based swimwear startup Frankies Bikinis. While Adore Me can provide VS&Co. with greater know-how on the sustainability front, Frankies Bikinis gives it a bit more insight on identifying trends that resonate with millennials and Gen Z.
VS&Co.’s mall-heavy business is moving towards an off-mall focus, and executives at the company’s October Investor Day presentation announced a goal to reach $7.3 billion in annual sales in 2025.
VS&Co. posted third quarter net income for the three months ended Oct. 29, 2022, of $24.4 million on net sales of $1.32 billion. That’s down from net income of $75.2 million on net sales of $1.44 billion in the same year-ago quarter. Sales thus far for the nine months totaled $4.32 billion, moving the company closer to its sales goal.
During the Q3 earnings report, CEO Martin Waters said the Adore Me acquisition “strategically positions us for accelerated growth. We are excited for the opportunity to leverage Adore Me’s expertise and technology to improve our customer shopping experience and accelerate the modernization of our digital platform. This is just one example of how we are committed to executing on our strategic growth plan.”