Shares in Victoria’s Secret experienced a decline today following the lingerie retailer’s decision to temporarily disable its US website due to an extended security breach. Customers attempting to access the site are greeted with a blank page featuring the company’s announcement rather than its typical range of products, including lingerie and sleepwear.
The retailer has acknowledged the issue, saying it has “identified and are taking steps to address a security incident,” as stated on their now-inactive site. Although physical stores are still operating, the disruption to online services is concerning, especially given that online sales generated $US2 billion ($3.1 billion) in net sales for 2024, accounting for approximately one-third of their annual revenue.
Victoria’s Secret’s website outage is unusual for a company of its size and highlights growing concerns regarding cybersecurity in the retail sector. Richard Blech, CEO of AI security firm XSOC Corp, noted that as hackers become more sophisticated, many retailers might lack adequate preparedness, often relying on third-party firms for cybersecurity management, which may compromise their security.
In response to the incident, Victoria’s Secret stated they have activated their response protocols and are collaborating with external cybersecurity experts. The ongoing attack trends signal a rising threat level for companies in the retail sector, with news reports indicating that other US retailers have recently been targeted by a notorious cybercriminal group, leading to federal intelligence briefings.
Previous incidents have shown how severe these breaches can be; for example, a hack on UK retailer Marks & Spencer resulted in losses amounting to £300 million ($627.7 million), severely impacting their online operations. Experts suggest that the scale of the Victoria’s Secret breach could follow a similar path, potentially leading to significant losses.
It’s reported that this website outage has persisted since at least Monday, leaving many consumers frustrated and concerned about the safety of their personal information. Last year, Victoria’s Secret appointed Hillary Super as its CEO amid challenges in sustaining consumer demand, following her success at Rihanna’s Savage X Fenty, which has emerged as a strong competitor.
Despite the ongoing challenges, Victoria’s Secret is faced with the task of restoring consumer trust and revamping its cybersecurity measures as it attempts to navigate a rapidly changing retail landscape. Further details about this security incident are anticipated as the situation evolves and the company continues to engage with experts to mitigate the effects of the breach.