Exploring Victoria's Secret Marketing and Product Trends for 2024

Consistent Marketing Spend

• Marketing expenditures are expected to remain stable over time.
• Focus is on optimizing how marketing dollars are allocated between Victoria's Secret and PINK.

Full-Funnel Marketing Strategy

• Victoria's Secret
  • Product Evangelism: Emphasis on mid-funnel strategies to promote product adoption.
  • Segmentation: Targeting a diverse customer base with tailored marketing approaches.
• PINK
  • TikTok Focus: Leveraging TikTok to engage Gen Z consumers through authentic and real-time content.
  • Collaborations & Partnerships: Expanding collaborations to enhance brand presence and reach.

Digital Enhancements

• Implementation of numerous digital improvements to drive in-store and online traffic.
• Bringing media buying and operations in-house for more efficient marketing spend and better traffic results.

Loyalty Program

• Over 35 million members driving 80% of weekly sales.
• Strategies to attract new customers by aligning brands and go-to-market strategies with cultural trends.

Product Assortment Expansion

• VSX Launch: Introduction of a lifestyle collection combining performance, comfort, and fashion with innovative designs.
• Beauty Products: Continued strong performance with a focus on luxury items priced up to $200+.
• Sports Bras: Increased adoption beyond active use, becoming a staple in everyday wear.
• PINK Apparel: Shift towards a more balanced and diverse apparel offering, moving away from solely collegiate styles.

Store Optimizations

• Store Consolidation: Downsizing and combining Victoria's Secret and PINK stores to improve productivity and operational efficiency.
• Enhanced In-Store Experience: Delivering a sexy, glamorous, and accessible luxury experience through optimized store layouts and product displays.

Collaborations and Partnerships

• Increased focus on co-creating products and campaigns through strategic partnerships to drive brand relevance and engagement.

Revenue Forecast

• Q4 2024: Net sales projected to increase 2% to 4% compared to Q4 2023.
• Full Year 2024: Sales expected to grow approximately 1% to 2% compared to the previous year.

Adjusted Operating Income

• Q4 2024: Forecasted between $240 million to $270 million.
• Full Year 2024: Forecasted between $315 million to $345 million.

Marketing Evolution

• Victoria's Secret: Continuing to lead with product launches while enhancing brand storytelling to reduce reliance on promotions.
• PINK: Adapting marketing strategies to align with Gen Z preferences and cultural trends, focusing on digital and social media engagement.

Growth Opportunities

• Product Diversification: Expanding into new apparel categories and enhancing beauty product offerings to drive customer frequency and engagement.
• Digital and In-Store Synergy: Enhancing digital platforms alongside in-store experiences to create a cohesive and engaging customer journey.
• Brand Relevance: Strengthening cultural connections and brand presence through innovative marketing and product strategies.