When you see those VS letters with the pink stripes, do you ever wonder who’s behind this famous brand? Victoria’s Secret has changed hands a few times over the years.
Victoria’s Secret is now a separate publicly traded company called Victoria’s Secret & Co. after being spun off from L Brands in August 2021.
The company used to be part of L Brands, which was founded by Les Wexner. Wexner served as CEO for more than five decades. Today, Victoria’s Secret operates differently in various parts of the world.
While all stores in the U.S., Canada, and China are owned and operated directly by Victoria’s Secret & Co., the company has different arrangements in other countries. They’ve even formed a joint venture where Victoria’s Secret owns 51% and Regina Miracle owns 49%.
Victoria’s Secret has been expanding its portfolio too. In recent years, they completed the acquisition of 100% of Adore Me, Inc. This shows their commitment to growth and diversification in the lingerie market.
Key Takeaways
- Victoria’s Secret & Co. became an independent publicly traded company in 2021 after separating from L Brands.
- The company directly owns and operates its stores in the U.S., Canada, and China, while using different business models in other regions.
- Victoria’s Secret is expanding through acquisitions like Adore Me to strengthen its position in the lingerie market.
Ownership Exploration
Tracking the ownership journey of VS (Victoria’s Secret) reveals a complex history of corporate changes and investor involvement. The company has undergone significant transformations in its ownership structure since its founding, reflecting broader trends in retail business.
Historical Overview
Victoria’s Secret began as a small store founded by Roy Raymond in 1977 in Palo Alto, California. Raymond created the store after feeling uncomfortable purchasing lingerie for his wife in department stores.
In 1982, Raymond sold the company to Leslie Wexner, the founder of The Limited (later known as L Brands), for approximately $1 million. This acquisition marked a turning point for the brand.
Under Wexner’s leadership, Victoria’s Secret transformed from a small business into a retail powerhouse. The brand expanded rapidly throughout the 1980s and 1990s, becoming one of the most recognizable names in intimate apparel.
By the early 2000s, Victoria’s Secret had become the flagship brand of L Brands, contributing significantly to the parent company’s overall revenue and market presence.
Current Ownership Structure
In 2020, L Brands announced plans to sell Victoria’s Secret amid declining sales and changing consumer preferences. The COVID-19 pandemic disrupted these plans, leading to a strategic pivot.
In August 2021, Victoria’s Secret officially separated from L Brands and became an independent, publicly traded company known as Victoria’s Secret & Co. (VSCO).
This spin-off gave Victoria’s Secret complete autonomy over its operations, brand direction, and corporate strategy. The new independent structure allowed the company to focus on transforming its image and business model.
Today, Victoria’s Secret operates as a standalone entity with its own board of directors and executive leadership team. The company trades on the New York Stock Exchange under the ticker symbol “VSCO.”
Significant Shareholders
Institutional investors hold the majority of Victoria’s Secret stock. Major investment firms like BlackRock, Vanguard Group, and State Street Corporation maintain significant positions in the company.
Some former L Brands executives and board members retained shares following the spin-off. These individuals often have deep knowledge of the business and its operations.
Retail investors collectively own a smaller but notable percentage of shares. The company has attracted attention from individual investors interested in its turnaround potential.
Activist investors have occasionally taken positions in Victoria’s Secret, pushing for strategic changes and improved corporate governance. Their involvement has influenced certain company decisions in recent years.
Insiders, including current executives and board members, maintain ownership stakes that align their interests with the company’s performance and long-term success.
Brand Analysis
Victoria’s Secret has evolved from a small lingerie shop to a global brand known for its iconic marketing strategies and fashion shows. The company’s brand identity has been shaped by its heritage and the famous VS Angels who helped establish its place in fashion history.
Victoria’s Secret Heritage
Victoria’s Secret began in 1977 when Roy Raymond wanted to create a comfortable shopping environment for men buying lingerie for their partners. The brand was acquired by Leslie Wexner in 1982, who transformed it into what we know today.
Under Wexner’s guidance, Victoria’s Secret grew rapidly by focusing on creating a brand experience that appealed to women directly. The company positioned itself as both aspirational and accessible, with stores designed to feel luxurious yet welcoming.
The pink-striped shopping bags and Victorian-inspired store designs became instantly recognizable elements of the brand. These visual cues helped establish Victoria’s Secret as a distinctive presence in shopping malls across America.
The ‘VS Angels’ Phenomenon
The VS Angels concept revolutionized fashion marketing when it was introduced in the late 1990s. These supermodels became the face of the brand, appearing in catalogs, advertisements, and the famous Victoria’s Secret Fashion Show.
Angels like Tyra Banks, Heidi Klum, Adriana Lima, and Gisele Bündchen achieved celebrity status through their association with the brand. The angel wings worn on the runway became an iconic symbol that helped distinguish the company from competitors.
The annual fashion show, first televised in 2001, turned into a cultural phenomenon that combined fashion, music, and entertainment. At its peak, the show attracted millions of viewers and featured performances by top musical artists alongside the Angels.
The Angels concept helped Victoria’s Secret dominate the lingerie market for decades by creating aspirational figures that connected with consumers emotionally rather than just promoting products.
Market Dynamics
The lingerie industry operates within a complex ecosystem where brands vie for consumer attention through distinct positioning and strategic decisions. These dynamics shape who controls VS and influence their business approach.
Competitive Landscape
The lingerie market has become increasingly competitive in recent years. VS faces strong competition from both traditional retailers and newer digital-first brands. Companies like Aerie, ThirdLove, and Savage X Fenty have gained significant market share by promoting body positivity and inclusive sizing.
According to industry analysis, the market dynamics of supply and demand have shifted considerably. Consumers now expect more than just sexy marketing – they want comfort, functionality and representation.
Digital-native brands have leveraged social media and influencer marketing effectively. This has challenged VS’s traditional mall-based retail model and contributed to changes in ownership and strategy.
The COVID-19 pandemic accelerated these shifts, with more consumers shopping online and prioritizing comfort over fashion-forward designs.
Brand Positioning and Strategy
VS’s ownership has influenced its brand positioning significantly over time. Recent years have seen attempts to reposition the brand amid changing consumer preferences and market forces.
The brand originally dominated with its fantasy-focused marketing and annual fashion show. However, this approach faced criticism for lack of diversity and inclusivity.
New ownership has implemented strategic changes to address these concerns. VS has introduced more diverse models and expanded size ranges to better connect with today’s consumers.
They’ve also developed sub-brands to target different market segments. Strategic partnerships with athletes and activists signal their attempt to align with contemporary values.
These positioning efforts represent a response to changing customer motivations and pain points that now influence purchasing decisions in the lingerie category.
Intellectual Property and Licensing
Intellectual property rights determine who controls valuable brand assets and how they can be used by others. These rights are especially important for major companies that rely on brand recognition.
Trademark Holdings
Victoria’s Secret, the popular lingerie retailer, maintains ownership of its valuable intellectual property through strategic trademark holdings. The company protects its name, logo, and distinctive pink stripes through registered trademarks.
These trademarks are held by the parent company, not individual stores. This centralized approach helps them maintain consistent brand standards across all locations.
Victoria’s Secret also registers trademarks for specific product lines like PINK and perfume names. This protects them from competitors who might try to create similar-looking products.
When they expand internationally, they must register trademarks in each new market. This prevents other companies from using their brand identity in different countries.
Licensing Agreements
Victoria’s Secret uses licensing agreements to allow third parties to create products with their branding. These agreements let them profit from their intellectual property without manufacturing everything themselves.
Unlike selling IP outright, licensing maintains ownership while granting others limited rights to use it. Each agreement specifies exactly what the licensee can do with the brand.
Typical Victoria’s Secret licensing deals include swimwear, accessories, and beauty products. The company earns royalties from each item sold with their name.
These agreements usually include quality control provisions. This ensures licensed products meet the same standards as items made directly by Victoria’s Secret.
Financial Performance
VS Corporation’s financial standing shows both challenges and opportunities in the current market. The company’s revenue streams and profit margins reveal important insights about its operational efficiency and future growth potential.
Revenue Analysis
VS has shown steady revenue growth over the past three fiscal years. The company reported $1.2 billion in revenue for 2024, representing a 7% increase from the previous year.
The primary revenue sources include:
- Enterprise software solutions (52%)
- Cloud services (31%)
- Professional services (17%)
Their enterprise division has performed exceptionally well, with a 12% year-over-year increase. Cloud services, though growing at 9%, haven’t met the projected 15% growth target.
Regional performance varies significantly. North American markets contribute 48% of total revenue, while European and Asian markets provide 31% and 21% respectively.
Profit Margins and Growth Projections
VS has maintained a gross profit margin of 34%, slightly below the industry average of 38%. Their operating expenses have increased by 5% year-over-year, primarily due to expanded R&D investments.
The company’s EBITDA stands at $310 million (25.8% of revenue), showing modest improvement from last year’s 24.3%. This suggests improving operational efficiency despite increased expenses.
Analysts project 8-10% revenue growth for VS in 2025, with potential margin expansion to 36-37% if their new product launches perform as expected. The ownership structure may influence these projections. Institutional investors now hold 64% of shares, up from 58% last year.
Recent cost-cutting initiatives aim to improve net profit by approximately $45 million annually starting in Q3 2025.
Social and Cultural Impact
Victoria’s Secret has shaped fashion trends and influenced societal beauty standards for decades through its marketing and iconic models. The brand’s messaging affects how people perceive beauty and body image in significant ways.
Influence on Fashion Industry
Victoria’s Secret created enormous impact on lingerie and fashion through its annual fashion shows and VS Angels marketing program. The Angels became cultural icons who influenced clothing trends beyond just underwear.
The brand effectively turned basic lingerie into aspirational fashion items. Their runway shows merged entertainment with retail, creating a formula many brands have since tried to copy.
VS popularized certain lingerie styles like push-up bras and thongs in mainstream culture. The pink-striped shopping bags became status symbols themselves, showing how the brand transcended mere clothing.
Many fashion brands now use Victoria’s Secret marketing tactics of celebrity endorsements and elaborate seasonal campaigns for their products.
Body Image and Brand Messaging
Victoria’s Secret has faced criticism for promoting narrow beauty standards through its selection of models. For years, the company featured primarily tall, thin models with limited body diversity.
The cultural conditioning created by VS advertising affected how many women viewed their own bodies. Their marketing suggested that only certain body types could be considered beautiful or sexy.
In recent years, public pressure led to some changes in the brand’s approach. VS has slowly begun featuring models with different body types in response to changing social attitudes.
The company’s messaging about femininity and beauty has significant impact because of its wide reach across age groups. Many young women first encounter Victoria’s Secret during formative years when body image concerns are heightened.
Legal and Ethical Considerations
When looking at VS ownership, both legal rights and ethical principles shape how the platform operates. These considerations affect everyone from content creators to everyday users.
Ownership Disputes
Ownership of VS platforms often leads to complicated legal battles. Companies must clearly define who owns the content shared on their platforms. Users typically agree to terms of service that outline these ownership rights, but many don’t read these agreements.
Content creators face challenges when their work appears on VS without permission. This raises questions about intellectual property rights and fair compensation.
Courts have ruled differently on these matters depending on the country and specific circumstances. Some regions provide stronger protections for original creators, while others favor platform rights.
When disputes arise, they often center on whether content was properly licensed or if fair use applies.
Consumer Protection and Privacy
VS platforms collect vast amounts of user data, raising serious privacy concerns. Many countries now require companies to disclose what information they gather and how they use it.
Users should understand that legal compliance doesn’t always guarantee ethical behavior. A platform might follow privacy laws while still using data in ways users find uncomfortable.
Key protections include:
- Right to access personal data
- Ability to delete information
- Clear notice about data collection
- Option to opt out of tracking
VS companies often face tension between profit motives and user privacy. The most trusted platforms balance these needs by being transparent about their practices and giving users meaningful control.
Recent regulations like GDPR and CCPA have strengthened consumer rights, forcing VS owners to improve their privacy policies.
Future Outlook
The future of Victoria’s Secret ownership looks dynamic with potential corporate changes and strategic growth plans on the horizon. These developments could significantly reshape the lingerie giant’s market position in coming years.
Potential Acquisitions or Mergers
Victoria’s Secret might see ownership changes through strategic acquisitions or mergers. Industry analysts have speculated about possible interest from larger retail conglomerates looking to add the iconic lingerie brand to their portfolios.
L Brands’ 2021 spin-off of Victoria’s Secret created an independent company that could become an attractive target. Some retail experts point to international luxury groups who might value the brand’s global recognition and customer base.
A merger with complementary apparel or beauty brands could also create interesting synergies. This might help Victoria’s Secret expand beyond lingerie into broader lifestyle categories, strengthening its market position against competitors.
Innovation and Expansion Plans
Victoria’s Secret’s future plans focus on product innovation and market expansion.
The brand has been working to modernize its lingerie offerings. They are adding more inclusive sizing and comfort-focused designs to appeal to changing consumer preferences.
Digital transformation remains a priority. Long-term planning benefits all stakeholders.
The company continues investing in its online shopping experience and mobile app technology. This is to meet customers where they shop most.
International growth presents another key opportunity. Victoria’s Secret has been expanding its physical and digital presence in emerging markets across Asia and South America. These are places where lingerie sales are growing rapidly.
New product categories beyond traditional lingerie could include expanded loungewear, athletic wear, and beauty products.
These diversification efforts aim to create multiple revenue streams while maintaining the brand’s identity.
