Try on Victoria’s Secret for size
$1.5 billion: Victoria’s Secret net sales for Q1 2022, down 4.5% YoY. Excluding the benefit of $75 million in government stimulus payments in Q1 2021, net sales were essentially flat YoY.
$6.8 billion: Victoria’s Secret full-year net sales for 2021, a 25% increase YoY.
31%: The percentage of revenue coming through digital channels in 2021. Earlier this year, Victoria’s Secret launched its Victoria’s Secret Beauty and Pink Beauty products on Amazon.
75%: Percentage of brands on Victoria’s Secret’s new digital platform, VS&Co-Lab, that are founded, owned, or led by women. After splitting from Bath & Body Works Inc. last year, CEO Martin Waters said Victoria's Secret was pivoting from “being about what he wants to being about what she wants,” per The Wall Street Journal.
47%: The percentage of US adults who are reducing their spending on clothing due to general rising prices, per CivicScience. “We have to give compelling offers. And if that means leaning into promotionality a little bit more in order to make sure we get our fair share of spend, that's what we will do,” Waters said in a Q1 earnings call.
Why we care: Though Victoria’s Secret is still growing into its more modern, inclusive identity, it seems to be paying off—so far. Will the brand continue to flourish? Or will its legacy be harder to shake?
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Any thoughts on their decision to chop real estate in favour of digital? Does the loss of presence on the high street matter?
Lingerie is an attractive business, high margin, but there is a lot of new entrants these days.