Lulus Becomes Victoria’s Secret’s Latest Brand Partner

Why It Matters

The move gives Lulus access to massive online traffic and complements Victoria’s Secret’s marketplace strategy, potentially accelerating revenue recovery for both parties.

Key Takeaways

• Lulus adds Amazon and Victoria’s Secret to wholesale
• Wholesale sales grew 140% year‑over‑year
• Net revenue fell 9% despite profit margin improvement
• Victoria’s Secret treats third‑party sales as direct revenue
• Target demographic: women in their 20s‑30s

Pulse Analysis

Lulus’s recent wholesale push reflects a broader shift among digitally native brands seeking scale beyond direct‑to‑consumer channels. By partnering with Amazon, the e‑commerce giant that now hosts former DTC names like Everlane and Charlotte Tilbury, Lulus taps into a vast, price‑sensitive audience while preserving its brand identity. The unexpected alliance with Victoria’s Secret further diversifies its touchpoints, positioning dresses alongside lingerie and athleisure in a curated online environment that appeals to the same 20‑30‑year‑old female shopper.

Financially, Lulus’s strategy appears to offset a challenging top‑line backdrop. Despite a 9% drop in net revenue and an 11% decline in active customers for the quarter ending September 28, the company improved gross profit by 2% and trimmed net losses by almost $5 million through distribution center closures and board downsizing. More telling is the 140% surge in wholesale sales over the past year, suggesting that third‑party placements are delivering higher volume at lower acquisition cost, a vital lever as the brand works to rebuild its customer base.

For Victoria’s Secret, embracing external brands like Lulus signals an evolution from pure lingerie retailer to a broader fashion marketplace. By classifying third‑party revenue as direct sales, the company can showcase growth without diluting its core brand narrative. This model mirrors industry trends where legacy retailers leverage their digital platforms to host complementary labels, creating a one‑stop shop that boosts average order value and keeps shoppers within the ecosystem. If successful, the partnership could set a template for other specialty retailers aiming to enrich assortments while sharing the cost of customer acquisition.