Ann Summers' Isis range includes lacy black and white bras, thongs and suspenders and is for sale online and in its shops, which number over 100 across Britain.
The retailer -- which also stocks sex toys, bondage gear and fancy dress -- named the range after the ancient Egyptian goddess of fertility.
But it shares its name with the Islamic State of Iraq and Syria (ISIS), the jihadist group now known as the Islamic State (IS).
A spokeswoman for Ann Summers said that names for its ranges are chosen months before their launch.
"We acknowledge the unfortunate timing of this product launch in our store windows, however we in no way support or condone any act of terrorism or violence," she said.
"We apologise for any offence caused."
She said there were no plans to pull the range from sale.
Ann Summers lingerie line named Isis.
The United States has been waging air strikes against IS militants amid fears the territory they have seized in Syria and Iraq could become a launchpad for global terror attacks.
