Victoria's Secret & Co. (VSCO): Business Model Canvas [Dec-2025 Updated]

You're looking at how a legacy giant navigates a full-scale brand re-evolution, and frankly, the current strategy at Victoria's Secret & Co. (VSCO) is fascinating to model. After executing their Path to Potential pivot, the company is clearly betting its iconic brand equity and its 38 million loyalty members will drive them toward the projected $6.450 billion to $6.480 billion in net sales for fiscal 2025, balancing high-touch marketing like the Fashion Show with the tech-enabled platform of Adore Me. Honestly, understanding the mechanics of this shift-from global sourcing to omnichannel execution-is key to assessing their near-term stability. Dive into the nine blocks below to see the precise structure underpinning this major turnaround effort.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that fuel Victoria's Secret & Co.'s operations as of late 2025. These alliances are critical for everything from making the product to getting it into the customer's hands, especially as the company pushes its international growth strategy.

Global supply chain management with Li & Fung Limited

The relationship with Li & Fung Limited remains central to the production pipeline. This partnership handles the sourcing and manufacturing contracts for apparel and accessories.

Victoria's Secret & Co. contracts to manufacture its products; it does not own manufacturing facilities. The company purchased merchandise from approximately 205 suppliers throughout the world during 2024.

International franchise and wholesale partners for global expansion

Global expansion relies heavily on partners operating under franchise, license, and wholesale arrangements. The international channel showed significant financial acceleration in the third quarter of fiscal year 2025.

• International sales for Q3 2025 reached $265 million, a 34% increase versus the prior year.
• International channel net sales increased 22% in the second quarter of 2025 compared to Q2 2024.
• The company has over 500 stores operating under these arrangements in nearly 70 countries as of June 2025 filings.
• Victoria's Secret & Co. operated 976 stores globally as of Q3 2023, which includes partner-operated locations.

The operations and performance of these franchisees, licensees, and wholesalers are a key factor in the company's results.

Strategic digital technology partners like Salesforce and Adobe Commerce

Digital backbone support comes from key technology providers, enabling the omnichannel strategy. Victoria's Secret & Co. invests in these platforms for customer relationship management and the shopping experience.

• Partnerships include Salesforce for CRM and e-commerce platform integration.
• Adobe Commerce is used for the digital shopping experience technology.
• Google Cloud is a partner for data analytics and cloud infrastructure, building AI-powered shopping experiences.

Regarding the technology stack, Adobe Commerce's roadmap for 2025 suggested capabilities to support up to 250 million SKUs in a single catalog, with support for 30,000 unique price points per SKU at any given time. A prior reported total annual investment in digital technology partners was $287 million (data point from 2024 context).

Retail collaborations, such as co-branded Sephora store locations

The partnership with Sephora is a major component of the Beauty segment's visibility and reach. Retailers are treated as strategic partners for growth, not just points of sale.

Sephora was cited as the top retailer in the fashion, lifestyle, and beauty space based on MIV for the first half of 2025.

Influencer and celebrity ambassadors for brand re-evolution

The brand re-evolution strategy heavily incorporates social-first creators and ambassadors to activate digital communities. The Victoria's Secret Fashion Show in October 2025 featured a mix of established models and social-first creators like Angel Reese.

The Victoria's Secret & PINK Content Creator Program is administered via the Duel platform, offering rewards and commission. To apply to this program, an applicant generally needs to have at least 2K followers on Instagram or TikTok and be a US resident aged 18 or older.

Finance: draft 13-week cash view by Friday.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Key Activities

You're looking at the core actions Victoria's Secret & Co. is taking right now to drive its business forward, based on the latest figures from the third quarter of fiscal year 2025.

Designing and developing core intimate apparel and beauty products.

The focus here is on product revitalization, which is showing up in the top-line results. For the third quarter of 2025, Victoria's Secret & Co. delivered net sales of $1.472 billion, marking a 9% increase versus the prior year. Total comparable sales for the quarter increased 8%. This growth was broad-based, showing strength across the Victoria's Secret, PINK, and Beauty categories. The intimates business, a core focus, returned to growth, increasing by mid-single digits, which translated to gaining over 1% share in the U.S. intimates market. International sales were a major driver, surging over 30% in the quarter, with China noted as a key contributor to this expansion.

Executing the 'Path to Potential' strategy for brand repositioning.

The disciplined execution of the 'Path to Potential' strategy is directly linked to the financial outperformance seen in Q3 2025. The strategy has successfully driven customer file growth; the total customer file grew for the first time this year, specifically led by an increase in new customers. The company is prioritizing investments in product innovation and brand strength as part of this ongoing effort. The success of this repositioning is reflected in the raised full-year outlook, with net sales guidance moving to a range of $6.45 billion to $6.48 billion for fiscal year 2025.

Global sourcing and logistics to mitigate the $90 million tariff impact.

Managing the supply chain efficiently is critical, especially with ongoing external pressures. The estimated net tariff impact for the full fiscal year 2025 is approximately $90 million, which is an improvement from the prior guidance of $100 million, showing mitigation efforts are taking hold. Mitigation tactics include optimizing costs with vendors, further diversifying sourcing locations, and ensuring a more efficient air versus ocean freight mix. Capital investments are being made in logistics, with total expected capital expenditures for fiscal year 2025 still projected at approximately $200 million. The company is also leveraging its operational model to deliver leverage on buying and occupancy expenses as net sales grow, helping offset some of the tariff pressure.

High-emotion marketing, including the returning Victoria's Secret Fashion Show.

High-emotion marketing moments are being used to drive cultural relevance and tangible business impact, particularly in the intimates category. The 2025 Victoria's Secret Fashion Show was a significant event, cementing its return. The digital reach was substantial:

This event was explicitly cited as driving mind share, customer share, and market share, leading to the aforementioned growth in the intimates business.

Managing and optimizing the omnichannel retail network.

The physical footprint is actively being optimized toward a 'Store of the Future' concept, even as the total square footage shrinks slightly. Square footage in North American stores is still expected to decrease approximately 2% compared to 2024. By the end of 2025, the Store of the Future presence in North America is estimated to be nearly 200 stores, representing approximately 25% of the fleet. Internationally, the estimate for Store of the Future presence is approximately 40% of the fleet. The total store count at the end of Q3 2025 was 1,404 locations, an increase from 1,380 in the same quarter last year. This physical presence supports the broader omnichannel strategy, where general industry data shows that 73% of retail consumers are omnichannel shoppers, and retailers using 3-or-more channels increase consumer engagement 250% more than single-channel retailers. Retailers with strong omnichannel engagement retain 89% of customers.

• Omnichannel shoppers deliver a 30% higher lifetime return on investment than single-channel shoppers.
• Omnichannel customer engagement increases average sales revenue by 9%.
• Shoppers are 19.8% more likely to purchase from stores offering omnichannel pick-up services.

Finance: draft 13-week cash view by Friday.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Key Resources

The foundation of Victoria's Secret & Co.'s business model rests on several tangible and intangible assets that drive its market position and revenue generation.

Iconic global brand equity remains a core resource, with the Victoria's Secret brand being recognized as the #1 Bra Brand and the PINK brand contributing to the company's overall strength. The brand's cultural relevance is quantified by its social media presence, including being the #2 Highest Followed Brand on Instagram and boasting approximately 150M+ Social Media Followers. The 'New Era of Sexy' Fashion Show in 2025 was a significant event, generating approximately 61M streams and boosting social media followers by 9 million.

The extensive global retail footprint provides physical access to customers, though the company is actively optimizing this presence. As of the third quarter of 2025, Victoria's Secret & Co. operated more than 1,400 retail stores across approximately 70 countries. This physical network is being modernized, with an estimate that the Store of the Future presence in North America will reach approximately 190 stores, or about 25% of that fleet, by the end of 2025.

Proprietary customer data and CRM systems are critical for personalized marketing, especially following a strategic, multi-year partnership with Google Cloud to leverage AI. The loyalty program is a major data capture mechanism, holding 45M Loyalty Members in North America. This program is highly effective, driving approximately 80% of weekly sales. Furthermore, the company's website drives more than 500 million annual visits, feeding the data ecosystem.

The Adore Me digital-first brand brings a technology-led platform to the portfolio. While its annual sales on adoreme.com were US$220m in 2024, projections for 2025 indicated a growth rate of 0-5% compared to 2024. In October 2025 specifically, adoreme.com generated online sales of $5,884,006. The platform utilizes proprietary tools, including an ecosystem of 15 internal tools that fuel solutions for business challenges.

Expertise in design and product innovation, particularly in the bra category, is a key differentiator, supporting the strategy to 'supercharge our bra authority'. This expertise translated into successful product launches, such as the Body by Victoria collection's FlexFactor bra, which drove double-digit new customer growth at Victoria's Secret in the final week of its campaign in Q2 2025.

Key quantitative resources supporting the business as of late 2025 include:

The underlying operational and intellectual assets supporting these resources include:

• The Adore Me Operating Platform, an ecosystem of 15 internal tools.
• A refreshed, experienced leadership team driving transformation.
• Strong operating cash flow, with $156 million reported in a recent period.
• A focus on reducing promotional reliance to drive higher Average Unit Revenues (AURs).
• The company's total assets valued around $4.76 billion.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Value Propositions

You're looking at the value exchange Victoria's Secret & Co. (VSCO) is offering customers as of late 2025, grounded in their Q3 performance and strategic execution.

'Bra Authority' with a focus on fit, comfort, and innovation.

The company attributes Q3 net sales growth to executing its Path to Potential strategy, which includes supercharging bra authority. While specific fit innovation metrics aren't public, the overall business momentum suggests traction. For instance, total comparable sales increased by 8% in Q3 2025 versus the prior year. Also, North American store sales grew by 5% in that same quarter.

Inclusive product assortment across multiple brands (VS, PINK, Adore Me).

The portfolio approach is clear, combining the core brand with PINK and the acquired Adore Me. The financial impact of the Adore Me acquisition is noted, with a pre-tax expense of $4.3 million recognized year-to-date 2024 related to purchase accounting items. Before the acquisition, Adore Me generated an estimated $250 million in profitable sales in its fiscal year 2022. The company is also recommitting to PINK, focusing on returning it to its roots as a lifestyle brand designed for 18 to 24-year olds.

Aspirational and emotional brand connection through storytelling.

The focus on brand projection is showing up in awareness metrics. The Victoria's Secret Fashion Show significantly boosted brand awareness, with streaming views up 60%. Social media followers also increased by 9 million following this event. This suggests the storytelling elements are helping re-engage the customer base.

Seamless omnichannel experience across physical and digital channels.

The digital and physical integration is a key value driver, especially internationally. International net sales surged 34% in Q3 2025, marking the third consecutive quarter of double-digit retail sales growth there. In North America, direct channel sales saw a 4% increase. Generally, in 2025, retailers with strong omnichannel engagement retain an average of 89% of their customers, compared to only 33% for weaker strategies. Furthermore, omnichannel shoppers deliver a 30% higher lifetime value (LTV) over single-channel shoppers.

High-quality, fashion-forward lingerie and beauty products.

The focus on product quality and reduced promotions is translating directly to margin improvement. The adjusted gross margin rate for Q3 2025 reached 36.5%, representing an expansion of 170 basis points year-over-year, which the company attributes to reduced promotions and higher regular-priced selling. The overall Q3 2025 net sales reached $1.472 billion, which was 9% higher than Q3 2024.

Here's a quick look at the segment performance driving these value propositions:

Finance: draft 13-week cash view by Friday.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Customer Relationships

You're looking at how Victoria's Secret & Co. connects with its shoppers as of late 2025. The strategy is clearly focused on deepening the relationship with the existing customer file, which management noted grew for the first time this year, driven by new customers, following the Q3 2025 results.

Loyalty Program Engagement

The core of the retention strategy is The VS & PINK Collective, which combines rewards across both the Victoria's Secret and PINK brands, regardless of payment method. This structure is designed to foster 'lifelong relationships with customers.' The program is tiered to incentivize higher spending:

• Insider: Base tier, no spending minimum required to join.
• All-Access: Unlocked upon spending $300 or more annually.
• VIP: Unlocked upon spending $750 or more annually.

While the specific active member count for late 2025 is not publicly stated in the latest reports, the program structure is designed to capture the most valuable customers, who are noted to spend more and visit more frequently, creating a halo effect across the entire brand.

High-Touch, Direct Engagement via Events and Social Media

Direct engagement is being driven by major cultural moments, most notably the 2025 Fashion Show, which was a major success in driving immediate and sustained digital interaction. This event is a clear example of using high-touch moments to translate into measurable business impact.

This direct engagement directly supported the core business, as the intimates category returned to growth, gaining over 1% share in the U.S. intimates market in Q3 2025. Furthermore, the company reported its highest Black Friday customer turnout since its spinoff, with roughly one million customers shopping in North America, up a high single-digit percentage from the prior year.

Dedicated In-Store Bra-Fitting and Customer Service

The company is actively working to reinforce its position as the destination for bras, which management views as critical due to the high value and loyalty of the bra customer. This expertise is delivered through in-person service:

• Elevating the experience with bra-fitting experts in top stores.
• New and existing stores offer personalized one-on-one bra fitting appointments with specially trained experts.
• Complimentary fittings are available with no appointment required.

This focus on expert service helps educate customers and showcase authority in the fit category.

Personalized Digital Communication and UGC Campaigns

Digital communication is being amplified through a social-first approach aimed at attracting new customers and growing the value of existing ones. The brand is integrating customer voices directly into its official marketing. For example, the core line of a recent campaign, 'Every Body is Runway Ready,' generated record saves and shares across Instagram and TikTok. This user-generated content (UGC) approach signals a commitment to listening to the community.

The overall Q3 2025 performance showed strong digital results, with international sales, heavily reliant on digital channels, growing over 30%.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Channels

You're looking at how Victoria's Secret & Co. gets its products and brand experience to the customer as of late 2025. It's a mix of physical presence, digital reach, and global partnerships, all working together after a strategic reset.

The physical footprint in North America remains a core channel, though the company is actively managing its size. For the third quarter of 2025, North American physical stores generated net sales of $778.2 million, reflecting a 5.4% increase year-over-year. This channel's performance contributed to the overall comparable sales growth of 8% across stores and direct for the quarter.

The Direct-to-Consumer (DTC) e-commerce channel continues to be vital, showing growth even after a second-quarter security incident. For Q3 2025, DTC e-commerce net sales were $428.5 million, marking a 4.3% increase from the prior year's $411.0 million. It's important to note that beginning in Q3 2025, direct sales in the European Union, which totaled $12 million for the quarter, were reclassified into the International channel.

International operations are a major growth engine, showing significant acceleration. In Q3 2025, this segment saw sales growth of 33.5%, reaching $264.8 million, with China being a standout market, especially through its digital presence. This marked the third consecutive quarter of double-digit retail sales growth internationally.

The global market penetration strategy heavily relies on wholesale and franchise partners. Victoria's Secret & Co. operates a global footprint that includes both company-operated stores and partner retail locations. As of the latest data, the company has over 1,400+ Stores Worldwide spanning approximately 70 Countries. The reported consolidated net sales figures explicitly include royalties associated with franchise partners sales and wholesale sales, showing these partnerships are integrated into the top line.

Here is a breakdown of the Q3 2025 channel performance:

Social media platforms and influencer networks are critical for driving brand heat and traffic, especially following major marketing moments. The Victoria's Secret Fashion Show in 2025 was a key driver:

• Streaming views for the show increased by 60%.
• The company gained nearly 9 million new social followers.
• Total media impressions hit 51 billion, up over 30% year-over-year.
• Site traffic surged over 60% on show day, converting over 15% more new customers.
• The brand is the #2 highest followed brand on Instagram, with approximately 150M+ total social media followers (as of fiscal year end 2024 data cited).

The company is also leveraging its loyalty program, reporting 45 million loyalty members in North America (as of fiscal year end 2024 data cited), which feeds directly into the digital and in-store channels.

Finance: draft 13-week cash view by Friday.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Customer Segments

Victoria's Secret & Co. targets a diverse customer base, segmented by geography, age, and loyalty status, as reflected in the third quarter of 2025 performance data.

The core market remains the established intimates customer, where the company is focused on reclaiming mindshare and market position. The intimates business returned to growth, up mid-single digits, leading to a gain of over 1% share in the U.S. intimates market during the third quarter of 2025.

The brand portfolio, which includes Victoria's Secret, PINK, and Adore Me, allows for targeting across different consumer preferences. The company holds the position as the #1 Bra Brand.

The strategy for younger consumers, primarily targeted through the PINK brand, shows traction. Management noted that new customer acquisition is being 'distorted to 18- to 24-year-olds.'

Global customers represent a key growth area. The international segment contributed significantly to the top line, with China specifically cited as a standout market driving the double-digit growth.

Brand-conscious individuals are engaged through major cultural moments and product authority. The company operates over 1,400+ Stores Worldwide across approximately 70 Countries.

Loyalty program members are critical for driving repeat purchases and providing data insights. The company has a substantial base of engaged customers in its primary market.

• 45 million Loyalty Members in North America as of fiscal year end 2024.
• Approximately 30 million customers were taking advantage of the multi-tender loyalty arrangement as of early 2024.
• 59% of Victoria's Secret shoppers agree they spend more money with brands when they are a member of their loyalty program.
• 64% of VS Pink customers agree with the statement that they spend more money with brands when they are a member of their loyalty program.

The loyalty structure is tiered, with levels like Insider, All-Access (reached after spending $300 in a year), and VIP (for those spending $750 or more in a year).

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the operational spending for Victoria's Secret & Co. as of late 2025. It's not just about what they sell; it's about the cost to get that product on the shelf and the investment needed to keep the brand relevant.

The cost of the actual merchandise, what we call Cost of Goods Sold (COGS), is a major component. For the third quarter of fiscal year 2025, the adjusted gross margin landed at 36.5%. Here's the quick math: if net sales for Q3 were $1.472 billion, that means the merchandise cost was roughly $934.72 million ($1.472 billion (1 - 0.365)).

Selling, General, and Administrative (SG&A) expenses are significant, covering everything from running the stores to brand promotion. In Q3 2025, the adjusted SG&A rate was 36.5%. This compares favorably to the prior year's rate of 36.8%, showing some leverage in overhead costs relative to sales growth.

Supply chain costs are under pressure, most notably from tariffs. The full-year 2025 guidance includes an estimated net tariff headwind of approximately $90 million. Victoria's Secret & Co. is actively working to mitigate this, using strategies like vendor cost optimization and diversified sourcing.

Capital spending is focused on the physical footprint and the digital backbone. The estimate for Capital Expenditures (CapEx) for the full fiscal year 2025 is set around $200 million.

These capital investments are directed toward key areas to support the Path to Potential strategy. What this estimate hides is the split between physical stores and digital infrastructure, but we know technology investment is a priority alongside the store capital program.

Here is a breakdown of the key cost structure elements based on the latest reported and guided figures:

The company is also managing inventory costs, with inventory levels expected to be up mid-teens for the full year.

• Investment focus areas include:
• Product innovation
• Brand strength initiatives
• Technology and logistics infrastructure
• Store capital program

To be fair, the successful margin expansion in Q3, up 170 basis points, helped offset some of the tariff and store costs in that specific period. Finance: draft 13-week cash view by Friday.

Victoria's Secret & Co. (VSCO) - Canvas Business Model: Revenue Streams

Victoria's Secret & Co. is raising its full-year 2025 net sales guidance to be in the range of $6.450 billion to $6.480 billion, up from prior guidance of $6.330 billion to $6.410 billion. For the fourth quarter of 2025, net sales are forecasted to be between $2.170 billion and $2.200 billion.

The third quarter of 2025 saw total net sales reach $1.472 billion, marking a 9% increase year-over-year. This revenue is generated through a combination of North American stores, digital channels, and international operations. Year-to-date 2025 net sales rose to $4.284 billion.

Here's the quick math on the Q3 2025 net sales segmentation:

The growth drivers show a clear pivot toward global markets and digital engagement. The company's core product lines, which include lingerie, bras, panties, and sleepwear under the Victoria's Secret and PINK brands, are a primary source of revenue.

• The intimates business returned to growth in Q3 2025, up mid-single digits.
• Comparable sales across North American stores and direct channels rose 8% in the third quarter.
• Growth was reported across all businesses, including Victoria's Secret, PINK, and Beauty.
• The international segment saw exceptional performance, with sales up over 30% during the quarter, driven by China.

Finance: draft 13-week cash view by Friday.