How many pairs of the perfect no-show neutral panties is too many? Asking for myself.
Years ago, I stocked up on Victoria’s Secret’s no-show seamless panties in every neutral shade they offered. And to this day, they’re still my go-to.
They fit just right. They disappear under anything. They’re the kind of everyday essential that’s harder to replace than you’d think.
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And for a lot of shoppers like me, that’s what Victoria’s Secret does best — when it gets it right.
But the brand hasn’t been getting a lot right lately. Once the undisputed queen of lingerie, Victoria’s Secret has spent years trying to reinvent itself for modern consumers. New leadership, new messaging, new stores. The turnaround is still a work in progress.
That’s why the timing of its latest stumble couldn’t be worse.
Just as the company was counting on a critical sales moment to fuel its fragile comeback, an unexpected mistake is about to take a $10 million bite out of its bottom line. Ouch.
Victoria’s Secret just made a $10 million mistake that’s hard to ignore
Image source: Shutterstock
Victoria’s Secret security breach derails critical sales moment
The Memorial Day sale is a major revenue driver for retailers — especially in categories like apparel and intimates.
For Victoria’s Secret (VSCO) , the stakes were sky-high. Heading into the summer, the brand needed a win after a stretch of flat sales and margin pressure.
But just before the company reported Q1 earnings, a cyber incident forced it to shut down their site and cancel one of its biggest sales events of the year.
Sekella told analysts the breach would wipe out about $10 million in expected profit this quarter. That’s a big chunk, considering the company only expects to make between $15 million and $35 million in total profit for the quarter.
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This comes as Victoria’s Secret works to transform its store fleet with its so-called ‘store of the future’ concept and grow its Pink business, which CEO Hillary Super called the brand’s “No. 1 volume opportunity.”
To make things more complex, activist investor BBRC International is turning up the heat. The firm, which holds about 13% of shares, recently blasted Victoria’s Secret’s board for alleged mismanagement and adopted a poison pill defense against a hostile takeover.
Amid all this, a $10 million cybersecurity mistake is the last thing the retailer needed.
$10 million hit adds to Victoria’s Secret’s shrinking margins
Victoria’s Secret isn’t alone in facing cybersecurity threats, but the timing of this breach raises fresh questions about its operational readiness.
Gross margin dropped to 35.2% in Q1, down from nearly 37% a year ago. Not the trajectory you want when fighting to stay relevant.
The company is betting big on Pink, lifestyle offerings, and a revamped store experience to win back shoppers. This $10 million hit adds to that struggle.
Beyond the immediate financial loss, it signals potential vulnerabilities that could shake consumer confidence and embolden activist critics — particularly with Q2 guidance already soft and margins under pressure.
Can Victoria’s Secret bounce back? It’s possible. Super and her new CMO, former Anthropologie exec Elizabeth Preis, are pushing hard on innovation. But in a market where agility and flawless execution are key, the margin for error is razor-thin.
For now, I’ll stick with my no-show panties…but Victoria’s Secret has a lot more proving to do if it wants to win the next generation of shoppers.
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