Tesla CEO Elon Musk on Thursday responded to a report that Victoria's Secret is abandoning its radical transformation efforts such as plus-size and transgender models and returning to a sexy line, saying "Thank God." Victoria's Secret has abandoned efforts at a radical transformation, according to media reports. The U.S. lingerie chain has spent the past two years trying to overhaul its overly sexualized image in a bid to regain cultural relevance and win back younger consumers.
Victoria's Secret has had some success in this regard, such as the launch of a "new" Victoria's Secret brand endorsed by soccer player Megan Rapinoe, transgender model Valentina Sampaio and other spokesmodels, but rave reviews from online critics have not translated into sales. The brand expects revenue for the current fiscal year to be $6.2 billion, down about 5% from the previous year and well below the $7.5 billion in 2020.
In a presentation to investors in New York last week, Victoria's Secret executives made it clear which version of the brand is their future.
“Sexy can be inclusive,” said Greg Unis, president of Victoria’s Secret brand Pink. “Sexy can celebrate the diverse experiences of our customers, and that’s what we focus on.”
The company will make improving profitability its primary goal and strive for annual sales of more than $7 billion. That means investing in new categories, including activewear and swimwear, updating its nearly 1,400 Victoria's Secret and Pink stores, and opening 400 new stores outside of North America. Costs will also be cut and, judging by information from the investor conference, less risk will be taken on brand image.
The company’s CEO, Martin Waters, said: “Despite everyone’s best efforts, it was not enough to win.”
Waters discussed the challenges facing the retail industry and consumers opting for lower-priced alternatives as inflation continues to squeeze wallets.
To win back these customers, Victoria's Secret has launched products beyond bras, underwear and pajamas. That means a return to swimwear and activewear, two categories the retailer has exited in recent years. Younes said activewear was once a $500 million business for the company, with a 16% share of the sports bra market. Today, this segment is much smaller, accounting for only 4% of the market.
A user on the Musk-owned
"The world is getting back to normal," another user commented.
Musk responded to the second user's post, saying "Thank God."