Victoria’s Secret brings sexy back after ‘inclusive’ rebrand brings sales slump

The brand had moved away from their "Angels" concept into showcasing models who were plus sized, transgender, disabled, and those not considered beautiful by contemporary beauty standards. This included the black trans social media influencer model Emira D'Spain, and US women's soccer star Megan Rapinoe. The New York Times praised the move in 2021, saying the brand was redefinining "sexy."

"For decades," the Times gushed, "Victoria’s Secret’s scantily clad supermodels with Jessica Rabbit curves epitomized a certain widely accepted stereotype of femininity. Now, with that kind of imagery out of step with the broader culture and Victoria’s Secret facing increased competition and internal turmoil, the company wants to become, its chief executive said, a leading global 'advocate' for female empowerment."

Yet in a presentation to investors last week in New York, "sexiness" was the new target for the company, which in 2018 ceased its famous runway shows and launched new campaigns featuring transgender, plus size, and LGBTQ models and spokespeople. The rebrand of "sexy" just didn't work.

"Sexiness can be inclusive," Victoria’s Secret and Pink brand president Greg Unis said. "Sexiness can celebrate the diverse experiences of our consumers and that’s what we’re focused on."

The company is projecting $6.2 billion in revenue in 2023, down 5 percent from 2022. This projection is also down over $1 billion from 2020, when the company saw $7.5 billion in revenue, according to CNN.

The company is looking to increase profitability and go back to earning over $7 billion in annual sales.

The around 1,400 Victoria’s Secret in Pink stores will be updated, and 400 new stores will be opened outside of North America. These stores will feature bright, warm light, a departure from the dark stores of the early 2000s, and fixtures painted a soft pink to evoke intimacy, Albert Gilkey, senior vice president of store design and construction, said.

The company will also reenter the activewear and swim categories, which the company had exited in recent years.

Unis said that activewear had been a $500 million business for the company at one pojnt, holding 16 percent of the sports bra market. Today, the company only holds a four percent share.

Fewer risks will also be taken with the brand’s image, with chief executive Martin Waters saying of the company’s revamp in recent years, "despite everyone’s best endeavors, it’s not been enough to carry the day."

Part of Victoria’s Secret’s makeover in recent years came competitors like ThirdLove and Parade, which featured inclusive marketing, began chipping away at Victoria’s Secret’s profits.

The company’s return to "sexiness," however, comes once again as companies nip at the brand’s heels, including singer Rihanna’s Savage X Fenty and Kim Kardashian’s Skims have seen exponential growth.

Skims, according to CNN, saw $4 billion in valuation in July, and projects it will reach $750 million in sales this year. Despite being less than Victoria’s Secret, the outlet notes that an IPO would give the shapewear brand the power to open stores and compete directly with Victoria’s Secret.

"We’ve been insufficiently differentiated in this difficult market," waters said. "But our ambition of being the world’s leading fashion retailer of intimates apparel is unchanged.