Victoria’s Secret has signed an agreement to acquire Adore Me for $400 million in cash, the company said Tuesday.
Adore Me is a lingerie startup known for its wide array of sizes. The move comes as Victoria’s Secret aims to become a more inclusive brand by increasing the diversity of its products.
The company said the transaction has been unanimously approved by the company’s board of directors and is expected to close by the end of January 2023, subject to customary closing conditions and regulatory clearances.
Victoria’s Secret said it plans to finance the transaction with cash on hand.
“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,” Victoria’s Secret CEO Martin Waters said in a statement. “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.”
Founded in 2011, Adore Me serves more than 1.2 million active customers and is powered by a proprietary technology platform with highly differentiated customer experiences including “Home Try-On” a popular monthly subscription option.
In late August, Victoria’s Secret said that it’s forecasting annual sales for 2022 to decline in the mid to high single-digit range, compared to the year-ago sales of $6.78 billion.
