Business Insider/Mary Hanbury
Victoria's Secret has been criticized for its racy ad campaigns.
- Victoria's Secret has been accused of failing to appeal to female shoppers in recent years, with some customers complaining on Facebook that its ads, which feature scantily dressed models, are targeted more towards men than women.
- Meanwhile, rival brand Aerie has doubled down on its efforts to promote female empowerment and is gaining market share.
- We've compiled a list of up-and-coming lingerie brands that could pose a threat to Victoria's Secret.
Lingerie giant Victoria's Secret has been accused of failing to appeal to its female shoppers with racy ad campaigns, relatively steep pricing, and rail-thin models.
In its parent company's most recent earnings report, released last Wednesday, same-store sales were down by 6% at Victoria's Secret stores.
Increasingly, brands such as American Eagle's body-positive underwear store, Aerie, have swooped in and taken market share away from Victoria's Secret. Aerie has seen 11 consecutive quarters of same-store sales growth; its same-store sales are up 23% so far in 2017 (fourth-quarter results have not yet been reported) and this is becoming a major concern for its main rival.
"Over the past few years, we believe the competitive landscape in lingerie (in constructed, un-constructed, and Sport) has evolved. In addition to players such as Aerie (AEO) who are offering a very clear brand proposition, new digitally-native entrants are entering the arena," Cowen analyst Oliver Chen wrote in a note to investors Thursday.
Here are some of the hottest new companies and collections that could pose a threat to Victoria's Secret:
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