Lingerie brand Victoria’s Secret has acquired Adore Me, a direct-to-consumer lingerie brand based in New York.
Victoria’s Secret on Tuesday said that its Adore Me acquisition “creates meaningful sales and profit upside opportunities” for the company. The intimates giant in November said it would purchase the DTC lingerie brand for $400 million.
Adore Me is expected to generate some $250 million in profitable sales in its most recently completed fiscal year, according to a company press release announcing the deal’s closing.
The company expects Adore Me to boost earnings and cash flow and provide “the opportunity to leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and PINK customer shopping experience and accelerate the modernisation” of its digital platform.
Victoria's Secret & Co. said Tuesday it expects the acquisition of Adore Me Inc., a digital intimates brand, which it has now completed, to boost earnings and cash flow in 2023.
The deal "creates meaningful sales and profit upside opportunities" for both Victoria's Secret and its Pink brand and is expected to add about $250 million of sales in fiscal 2022.
Victoria's Secret first announced the acquisition of Adore Me in November, saying it would pay $400 million in an upfront cash payment and make further payments on reaching certain goals over a two-year period.