Victoria’s Secret ends subscription program tied to $400M deal

The fourth quarter delivered the company’s highest revenue since becoming an independent public company, CEO Hillary Super said, citing stronger product demand and brand momentum.

Bras 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 fourth-quarter net sales of about $2.27 billion, an increase of nearly 8% compared with the same period last year. Comparable sales rose at the same rate.

Despite the revenue growth, profitability slipped. Operating income fell about 14.5%, while net income declined roughly 5% during the quarter.

Even so, analysts noted that the results exceeded expectations on both the top and bottom lines.

The company expects full-year 2026 net sales to land between $6.85 billion and $6.95 billion, representing at least 4.5% growth compared with 2025.

Even though both earnings and sales beat analysts’ expectations, the stock fell more than 8% in premarket trading on Thursday as the results failed to align with investors’ expectations, Barron’s reported.

Analysts say the company’s decision to review DailyLook and rethink Adore Me’s subscription structure could reflect a broader effort to simplify operations.

In a note following the earnings release, analysts at Guggenheim Securities said evaluating the styling service helps reinforce the company’s focus on its main brands.

Victoria’s Secret has spent several years trying to reposition itself after facing declining sales, increased competition from digital-first lingerie brands, and shifting consumer expectations.

Related: Costco makes a policy change that frustrates members

In recent years, the retailer has revamped marketing, expanded size inclusivity, and experimented with new digital initiatives.

The Adore Me acquisition was part of that push to into the digital era.

But integrating startup-style business models into a large legacy retailer can be complicated. Subscription services in particular can be costly to operate and may not always align with the merchandising and logistics structure of traditional retail brands.

“Victoria’s Secret has decided to end the Adore subscription model as this part of the business was very difficult to make a reasonable return on,” retail analyst and author Bruce Winder told TheStreet. “The ability for customers to return unwanted items is cost prohibitive.”

“Based on the current economic challenges, particularly for young people, the subscription business model has been under pressure,” he added.

The decision to eliminate the Adore Me subscription program doesn’t necessarily signal a retreat from digital commerce.

Instead, it may indicate that Victoria’s Secret believes loyalty programs — which reward repeat purchases without requiring monthly billing — are a better fit for its customer base.

At the same time, the review of DailyLook suggests the company is willing to reconsider businesses that don’t clearly support its long-term strategy.

For investors, the takeaway is less about the end of a 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 the latest moves show that 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 best-known lingerie brands.

Related: Popular women’s fashion brand closes dozens of stores nationwide

This story was originally published by TheStreet on Mar 8, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.