Victoria’s Secret Wants A Comeback — Kim Kardashian’s Skims Is The Biggest Disruptor Standing In Its Way

• Hillary Super was named as CEO in August 2024 to succeed Martin Waters.
• A move that seems to be working for Victoria’s Secret, which reported blowout quarterly results on Friday.
• GlobalData Retail analyst Neil Saunders said that Skims is a potential challenger to Victoria’s Secret, but there is enough room in the market for both brands.

Once upon a time, Victoria’s Secret was the innerwear brand that women coveted. But in recent years, fading appeal and rising competition, especially from Kim Kardashian’s Skims, have left the iconic lingerie maker in a soup, with sales sliding and demand flattening.

That is when the company decided to hire Hillary Super as CEO, succeeding Martin Waters in 2024 — a move that now appears to be paying off, with Victoria’s Secret reporting blowout quarterly results on Friday.

The first thing Super had to oversee as she took the helm was the return of the popular Victoria's Secret annual runway show, featuring supermodels with jewel-encrusted bras and angel wings, which returned in 2024 after a nearly six-year hiatus. 

The show was cancelled in 2019 after several controversies, including a rise in criticism after its then marketing chief in 2018 made transphobic comments, and investigative media reports unearthed a link with the disgraced financier Jeffrey Epstein, who reportedly served as an adviser in the 1990s to CEO Les Wexner, triggering his exit five years ago.

Since Super took over as CEO in August last year, VSCO’s stock has skyrocketed more than 165% — a clear sign that investors are betting big on a turnaround under only the third woman to lead the company in its 48-year history.

Recommitting To The PINK Brand

PINK brand remains a favourite among many younger women shoppers, who have enjoyed its designs and the comfort of its lingerie. But missteps led to waning consumer interest. Not everyone was shopping at the stores, which were once capable of pulling in customers without much effort and only a perfume sprayed in the air to remember.

However, the recent quarter showcased the company's efforts to recommit to the PINK brand, make it a household name again, make it a brand youngsters go back to, and improve it.

The company also repurchased the brand in the spotlight during the Victoria’s Secret Fashion Show this year. “PINK's moment in the spotlight sparked tremendous excitement, amplifying the impact of the entire event and elevating the experience for fans around the world,” Super said during the earnings call last week.

“We are focused on returning PINK to its roots as a lifestyle brand designed for 18- to 24-year-olds, a segment we pioneered and once dominated,” she added. Super noted that this meant reestablishing PINK's identity as digitally first and socially driven.

Competition From Kim K's Skims

The period of irrelevance saw a growing number of brands take the spotlight away from Victoria’s Secret. One such brand is now a go-to for women: Skims. The brand, co-founded by Hollywood star Kim Kardashian, has been giving Victoria’s Secret a tough competition.

“The competitive landscape with names like Skims (Kim Kardashian), Fenty, Savage (Rihanna’s brand), ThirdLove and names like Bluebella and Aerie are heady competition in a crowded space, but Victoria’s Secret has vast resources and is responding to the challenge with new and innovative products,” Bob Lang, chief options analyst at Explosive Options, said.

The company has been able to attract customers by staying up to date with consumer preferences and by adopting strategies to appeal to a broader audience, across all sizes and shapes.

GlobalData Retail analyst Neil Saunders said that Skims is a potential challenger to Victoria’s Secret. Still, there is enough room in the market for both brands, especially as each has a slightly different target.

“In some ways, Victoria’s Secret’s modernization is helpful as the brand image is becoming much more about empowerment, which is one of SKIMS’s core values,” Saunders told Stocktwits.

Pricing Strategy: Victoria’s Secret VS Skims

As part of its turnaround, Victoria’s Secret has decided to roll back on heavy promotions and promote full-price sales of its lingerie, which seems to be working. But analysts say the pricing is still not too high compared to the likes of Skims.

Lang noted that the Skims brand offers lovely attire, but at much higher price points, which does not deter consumers. “Regardless, Victoria’s Secret is going to fight hard for their customer and spend what they need to spend in order to keep them coming back for more,” he added.

Scott Sekella said that, compared to last year, this year included continued strength in regular-price selling and a pullback in traditional promotions, resulting in lower discounting throughout the quarter. 

“There is some overlap in pricing between the two brands but, generally, Victoria’s Secret is more mainstream while Skims pushes prices much higher,” Saunders said.

He added that Skims is not a luxury brand, but it is premium and plays mostly outside of the mass market. 

What Is Retail Thinking?

Victoria’s Secret has seen a 26% jump in users adding the stock to their watchlist on Stocktwits over the past year. Retail sentiment on the stock was in the ‘extremely bullish’ territory compared to the ‘bearish’ seen a year ago, with message volumes at ‘extremely high’ levels.

Shares of Victoria’s Secret have gained over 22% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: PepsiCo’s Big Reset: How The Soda Giant Is Going All Out On A Leaner, Meaner Playbook After Some Activist Heat

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