Victoria's Secret eyes Bath & Body Works turf with fragrance push

For much of the ‘90s and ‘00s, L Brands Inc. dominated shopping malls across the country. At various points, the conglomerate owned companies including Lane Bryant, Express, Abercrombie & Fitch, Limited Too, La Senza, Bath & Body Works, and Victoria's Secret.

By 2021, after years of mall traffic decline thanks to the rise of ecommerce, L Brands Inc. was down to just two remaining brands: Bath & Body Works and Victoria's Secret. That summer, it made the decision to officially separate the retailers into two separate companies.

At the time, Bath & Body Works was the stronger performer, while Victoria's Secret was struggling to find its footing in a post-mall world. That more or less remained the case for the next several years.

However, the tide began to turn for Victoria's Secret in early 2025, after the company brought on Hillary Super as CEO and launched a turnaround plan.

Super's "Path to Potential" turnaround plan for Victoria's Secret has four components. But the one the company seems to be leaning into most heavily puts it in direct competition with its former sibling: aggressive growth in the fragrance and beauty sector.

Beauty is thriving in a cash-strapped economy

One of the four components of Victoria's Secret's "Path to Potential" is an increased focus on its beauty and fragrance lines.

It's a smart move, given the fact that beauty is one of the few retail categories that has seen consistent growth amid the current economic downturn. In 2025, mass retail beauty sales grew 5% to $72.7 billion year over year, according to research from Circana. Prestige beauty sales also saw a jump, increasing by 4% to $36 billion.

This reflects an economic concept called the lipstick effect, Investopedia notes. Essentially, when the economy slows down, consumers may be watching their overall budgets more closely and cutting down on big purchases, but they're still willing to make smaller luxury purchases.

Victoria's Secret's bottom line has certainly benefited from that lipstick effect over the last few months. At the close of Q4 FY2025, the retailer told investors during the company's most recent earnings call that beauty remained a consistent growth driver, with low single-digit sales growth.

"While still early in our transformation, the results to date are clear," Super said. "[In 2025] we steadily grew our nearly $1 billion beauty business."

Victoria's Secret is taking on Bath & Body Works in the fragrance category

Victoria's Secret does carry a limited range of cosmetics, but its main focus in the beauty department has been fragrance.

"In beauty, scent is our secret weapon," Super told investors. "It is often her first layer and her lasting impression tied to memory and the moments that matter most. For her, fragrance is emotional. For us, it's powerful. It creates loyalty and connection in a way that few categories can. This emotional resonance is translating into meaningful growth."

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That focus on fragrance isn't limited to perfumes and body mists. In September, the retailer launched a home fragrance line featuring candles, room sprays, reed diffusers, and hand soaps, Retail Dive explained.

Fragrance and candles are, of course, two of Bath & Body Works' primary categories.

While Bath & Body Works continues to own the market in the candle category, reporting single-digit growth in the category at the close of Q4 FY2025, Victoria's Secret is giving the retailer a run for its money in fragrance.

During Bath & Body Works' March investor call, Chief Financial Officer Eva Boratto told investors the company had seen declines in body care sales, which include their fragrance lines.

"Consumer research shows our Body Care offerings have become too predictable and that we need to be more disruptive, modern, benefit-led innovation," she noted.

Meanwhile, Victoria's Secret told its investors that fragrance was driving its beauty sales.

"Newness in fine fragrance, including the holiday edition of Bombshell, resonated strongly, amplified by integrated marketing across channels," Super told investors in March. "As a result, beauty grew low single digits in the quarter, driving another year of growth for the business."

The difference in results isn't just tied to innovation, but also linked to the type of fragrance each retailer sells.

Bath & Body Works primarily sells body mists, lighter sprays with less fragrance that aren't designed to linger as long, while Victoria's Secret is emphasizing its fine fragrance and perfume lines.

"Fine fragrance continues to lead our beauty business and remains a key differentiator," Super told investors. "While many brands compete primarily in mist, we have established ourselves as a world-class fine fragrance destination with craftsmanship and creative rigor of couture fashion houses. This is anchored by Bombshell, America's number one fragrance."

Of course, perfumes often come with a higher price tag than body mists, which could eventually price Victoria's Secret out of the "lipstick effect"affordable indulgence" category. However, the retailer says it's "implementing strategic pricing actions," designed to keep it accessible for its target consumer.

By positioning itself as a "world-class fine fragrance destination," Victoria's Secret is ensuring it remains a staple in a lipstick-effect economy. In order to remain competitive with its former sibling brand, Bath & Body Works will have to step up its scents.

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This story was originally published May 4, 2026 at 10:23 AM.