Women are noticing that Victoria's Secret is focusing more on comfort.

• It might be challenging for shoppers to accept that Victoria's Secret's latest lingerie collection is indeed from Victoria's Secret.
• The retailer revealed its latest collection of bras and panties, called Love Cloud, in mid-February. This line emphasizes all-day comfort with minimal embellishments, the company stated.
• After the market closes on Wednesday, Victoria's Secret will release its fiscal fourth-quarter results.

’s new lingerie lineup is actually from Victoria’s Secret.

In February, Victoria's Secret launched its latest collection of bras and panties, called Love Cloud, emphasizing all-day comfort with minimal embellishments. The brand also featured a diverse group of models, including its first-ever model with Down syndrome, Sofia Jirau, in the marketing campaign.

The launch of Love Cloud is another indication that Victoria's Secret is committed to transforming its image from exclusive and provocative to tasteful and inclusive. This shift could potentially boost sales in the near future, which is crucial for investors who have been skeptical about the company's prospects. Despite this, Victoria's Secret shares have declined by over 4% year to date, with a 20% drop in value over the past six months, resulting in a market capitalization of $4.8 billion.

In 2020, Victoria's Secret's revenue decreased by 28% to $5.4 billion from $7.5 billion the previous year, partly due to Covid-19-related store closures and reduced consumer demand. The company will release its fiscal fourth-quarter and full-year results after the market closes on Wednesday.

Victoria's Secret's shift towards more comfortable items is in line with women's desire to incorporate such items into their wardrobes as they return to social settings, including going to the office. Analysts seem to support this move.

According to Victoria's Secret's design chief, the company is going back to the drawing table for new merchandise.

In an interview, Janie Schaffer, Chief Design Officer, stated that innovation is evident in our business.

Schaffer, a longtime employee of Victoria's Secret, returned to the company in 2020 after working at Marks & Spencer. He brought in a new team to bring a fresh perspective to the business, and it seems to be paying off in the early stages.

Victoria's Secret underwent a broader shake-up, with Martin Waters being appointed as its new CEO in late 2020. The company also announced the hiring of a new chief human resources officer and executive vice president of North America store sales, with the goal of improving employee morale and winning customers back.

In August, Victoria's Secret split from to become a separate publicly traded entity.

Schaffer has played a crucial role in creating Love Cloud, a bra that she describes as "the most comfortable bra in the world." This is a significant departure from the wire-filled and padding-packed bras that Victoria's Secret has traditionally offered.

We have recently launched a maternity nursing bra and a mastectomy bra, demonstrating our commitment to supporting women at every stage of their life," she stated. "It's our mission to empower and uplift women throughout their journey.

In the meantime, Victoria's Secret is remodeling its retail stores across the United States with updated fixtures, lighter paint on the walls, and mannequins of various shapes and sizes to welcome customers. The company plans to touch up all of its approximately 1,400 locations globally in the coming years and is also testing a smaller, off-mall format.

Signs of an improving image

A recent survey revealed that women are increasingly focusing on Victoria's Secret's recovery.

In January, Bank of America surveyed 1,000 women aged 18 to 65 and discovered that their complaints about Victoria's Secret were lower compared to pre-pandemic times.

According to BofA, 13% of women said they preferred Victoria's Secret over their pre-Covid opinions, while 23% said they disliked it more, and 64% had no change in their opinion. This is an improvement from 2019, when 33% of respondents in a similar survey said they disliked Victoria's Secret more over the past 12 months, with many citing poor brand image.

In recent years, the PINK brand, a division of Victoria's Secret that targets younger women, has maintained its brand image more consistently. However, the biggest issue for consumers with PINK, according to a survey, is the higher prices.

Lorraine Hutchinson, a BofA analyst, stated in a note to clients that Victoria's Secret's brand overhaul seems to be successful. She emphasized that the resumption of bra launches is a vital strategic change that is crucial for increasing market share.

Choosing comfort

Victoria's Secret aims to attract women of all ages with its new Love Cloud lingerie line, featuring six different silhouettes at affordable prices.

NPD Group's fashion apparel industry analyst, Kristen Classi-Zummo, stated that women are increasingly opting for comfort-fitting bras, including sports bras, for daily wear. In 2021, total bra sales in the U.S. increased by 6% compared to 2019 levels. Among these sales, sports bra sales jumped by 43%, while nonsports bras saw a 7% increase on a two-year basis. This category includes wire-free bras, such as those launched by Victoria's Secret as part of their Love Cloud collection.

Women are now seeking more comfortable and casual bras due to a shift in their wardrobe, which is influencing their undergarment choices.

Victoria's Secret faces competition from various established and emerging brands such as ThirdLove, Lively, and Aerie, which offers a wide range of comfort-focused bras including sports bras and bralettes. These retailers have been more inclusive in their marketing from the beginning.

Jessica Ramirez, a retail analyst at Jane Hali & Associates, stated that she has observed Victoria's Secret becoming more inclusive, as its stores and online offerings now include a wider range of sizes, and its models appear to be less retouched in images.

Earnings snapshot

In the near term, supply chain constraints may hinder the company's progress, Ramirez stated.

The supply chain and financial implications of the recent Love Cloud launch will be discussed by Victoria's Secret when it reports its fiscal fourth-quarter results after the market closes on Wednesday.

The company confirmed its earlier forecast for sales growth of 0% to 3% in December, with projected diluted earnings per share ranging from $2.35 to $2.65.

According to a Refinitiv survey, analysts anticipate earnings of $2.64 per share and sales of $2.14 billion.