Victoria’s Secret & Co. is closing in on recently acquired businesses that it hoped would contribute to a major lingerie modernization.
The retailer said it has ended a subscription service tied to its direct-to-consumer brand, AdoreMe, and will instead shift the program to a loyalty model as part of a broader reassessment of the business. The company disclosed the move during its most recent earnings call.
On March 5, 2026, Victoria’s Secret and Co. CEO Hilary Soper said the company had also begun a strategic review of Daily Luck, the personal styling service that came with its acquisition of Adore Me. The CEO said they are evaluating how the business fits into the retailer’s long-term strategy.
Management shared that DailyLook “serves as a digital-based premium subscription … and represents a non-core asset in our portfolio.” They also noted that the company has “discontinued Adore Me’s intimates-based subscription offering and transitioned to a loyalty program” as part of an ongoing review of its business.
The moves mark a shift in how Victoria’s Secret approaches the digital-first brand it acquired just a few years ago.
Victoria’s Secret revealed that it will acquire Adore May in 2022 and complete the deal in 2023, worth about $400 million. At the time, executives emphasized the company’s technology platform and subscription-based customer model as key reasons for the deal.
AdoreMe has built its business around a VIP membership program that bills customers monthly regardless of whether they skip a cycle or make a purchase. The model is similar to that used by sportswear brand Fabletics and jewelry service Penny & Grace.
Subscription systems are designed to drive repeat purchases and deepen customer loyalty.
At the time, the anchor company said the acquisition would strengthen its digital capabilities while bringing in a younger customer base.
On a call this week, Chief Financial and Operating Officer Scott Sekila told analysts that the company is closing Adore Me’s distribution center in Mexico as it continues to evaluate the brand’s operations.
These changes suggest that Victoria’s Secret may be integrating the brand more closely into its wider business, rather than running it as a separate subscription-driven platform.
In a statement accompanying the earnings release, the retailer said the review is to ensure resources are focused on core brands.
Victoria’s Secret beat revenue expectations, the company shared in its latest earnings report. Shutterstock ·Shutterstock
The strategic moves come alongside relatively strong sales growth.
The fourth quarter delivered the company’s highest revenue since becoming an independent public company, CEO Hilary Soper said, citing strong product demand and brand momentum.
Brass returned to growth for the first time since 2021, while the PINK brand delivered its strongest performance in a decade. The company’s beauty category — now a $1 billion business — also posted another year of growth.
Victoria’s Secret reported net sales of about $2.27 billion in the fourth quarter, an increase of nearly 8% over the same period last year. Comparable sales rose at the same rate.
Despite the revenue growth, the profit decreased. Operating income fell about 14.5%, while net income fell about 5% in the quarter.
Even so, analysts noted that the results exceeded expectations on both the top and bottom lines.
The company expects net sales to be between $6.85 billion and $6.95 billion in 2026, representing growth of at least 4.5% over 2025.
Even though both earnings and sales beat analysts’ expectations, the stock fell more than 8% in premarket trading Thursday as the results fell short of investors’ expectations, Barron’s reported.
Analysts say the company’s decision to overhaul DailyLook and rethink Adore Me’s subscription structure could reflect a broader effort to streamline operations.
In a note after the earnings release, Guggenheim Securities analysts said the assessment of the style service helps reinforce the company’s focus on its core brands.
Victoria’s Secret has struggled to reposition itself after years of declining sales, increased competition from digital-first lingerie brands, and changing consumer expectations.
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In recent years, the retailer has revamped marketing, expanded its range of products, and experimented with new digital innovations.
The acquisition of AdoreMe was part of this push into the digital age.
But integrating startup-style business models at a large legacy retailer can be complicated. Subscription services can be particularly expensive to operate and may not always fit the merchandising and logistics structure of traditional retail brands.
“Victoria’s Secret decided to end the AdWords subscription model because it was too difficult to make a reasonable return on this part of the business,” retail analyst and author Bruce Winder told TheStreet. “The cost of being able to return unwanted items for customers is prohibitive.”
“Based on the current economic challenges, especially for young people, the subscription business model is under pressure,” he added.
AdoreMe’s decision to eliminate its subscription program doesn’t necessarily signal a retreat from digital commerce.
Instead, it may indicate that Victoria’s Secret believes its loyalty programs — which reward repeat purchases without requiring monthly billing — are the best fit for its customer base.
Meanwhile, DailyLook’s review suggests the company may want to review businesses that don’t clearly support a long-term strategy.
For investors, the wait is less about the end of the subscription service and more about how the company is refining its turnaround plan.
Victoria’s Secret still sees digital innovation as essential to growth. But recent moves show management is willing to adjust tactics as it works to balance technology investments with profitability.
If the changes help streamline operations while maintaining sales momentum, they could mark another step in the company’s broader effort to modernize one of the world’s most popular lingerie brands.
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This story was originally published by The Street on March 8, 2026, where it first appeared in the Retail section. Add TheStreet as a Favorite Source by clicking here.
