Victoria’s Secret & Co. Announces Partnership With Regina Miracle International (Holdings) Limited for Existing Business in China
January 25 2022 - 6:30AM
Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”)
(NYSE: VSCO) today announced a partnership agreement with Regina
Miracle International (Holdings) Limited (“Regina Miracle”) (HKG:
2199) related to its existing company-owned business in China.
Victoria’s Secret and Regina Miracle have formed
a joint venture (“JV”) to operate all Victoria’s Secret stores and
the related online business in China. Under the terms of the
agreement, Victoria’s Secret will own 51 percent of the JV with
Regina Miracle owning the remaining 49 percent. Based on the
Company’s financial review of its China business and the terms of
the JV agreement agreed upon by both parties, the Company does not
anticipate this proposed transaction to have a material impact on
the previously affirmed operating income and earnings per share
guidance for the fourth quarter of fiscal 2021.
The agreement is subject to regulatory clearance
which is anticipated to occur in the first quarter of fiscal 2022.
At such time, the transaction will be completed and the Company
will receive $45 million in cash from Regina Miracle as
consideration for its investment in the JV.
CEO Martin Waters commented, “I am delighted to
announce this partnership with Regina Miracle, who has been a
valued merchandise supplier partner for more than twenty years.
Together with Regina Miracle, we aim to grow the China business
through joint investment in product development, distribution, and
marketing. We expect the partnership will positively impact the
speed and agility of the business to benefit consumers and provide
us with a platform for a strong future in this important market.
This JV with Regina Miracle in China completes a multi-year
repositioning of the International business of the Company and we
believe establishes a platform for accelerated sales and earnings
growth in the market over the next several years.”
YY Hung, Chairman, CEO & Executive Director
of Regina Miracle, said, “We are honored and excited to be
elevating our long-standing partnership with Victoria’s Secret
through the formation of this joint venture in the promising China
market. We are confident that our highly complementary strengths –
Regina Miracle’s industry-leading innovation capabilities and
market foresights as an Innovative Design Manufacturer, and
Victoria’s Secret’s undisputed brand leadership, retailing and
marketing expertise – will perfectly position this partnership in
capturing the growth opportunities in China.”
About Victoria’s Secret
Victoria’s Secret is the world’s largest
intimates specialty retailer offering a wide assortment of modern,
fashion-inspired collections including signature bras, panties,
lingerie, casual sleepwear, athleisure and swim, as well as
award-winning prestige fragrances and body care. With nearly 1,400
retail stores worldwide and a predominately female workforce of
more than 25,000, Victoria’s Secret boasts the largest team of
specialty trained bra fit experts worldwide. Victoria’s Secret is
committed to inspiring women around the world with products and
experiences that uplift and champion them and their journey while
creating lifelong relationships and advocating for positive
change.
About Regina Miracle International (Holdings) Limited
(2199.HK)
Regina Miracle International (Holdings) Limited, a global leader
in the intimate wear manufacturing industry with a unique
innovative design manufacturer (“IDM”) business model, is engaged
in the innovation, design and manufacturing of a diverse range of
products, including mainly intimate wear, sports bra and apparel,
consumer electronics components, and footwear. Committed to product
innovations through proprietary craftsmanship revolutions, patented
product and production technological breakthroughs, the company has
acquired a number of competitive industry edges that have
spearheaded its developments over the years into being a global
industry leader. Today, Regina Miracle has two strategic
strongholds – its R&D and production base in China, and a major
production base in Vietnam, with a combined workforce of more than
46,000.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995
We caution that any forward-looking statements
(as such term is defined in the Private Securities Litigation
Reform Act of 1995) contained in this press release or made by our
Company or our management involve risks and uncertainties and are
subject to change based on various factors, many of which are
beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Words such as
“estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,”
“intend,” “planned,” “potential” and any similar expressions may
identify forward-looking statements. Risks associated with the
following factors, among others, in some cases have affected and in
the future could affect our financial performance and actual
results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements
included in this press release or otherwise made by our company or
our management:
- the spin-off from Bath & Body
Works, Inc. (f/k/a L Brands, Inc.) may not be tax-free for U.S.
federal income tax purposes;
- a loss of synergies from separating
the businesses that could negatively impact the balance sheet,
profit margins or earnings of Victoria’s Secret or that Victoria’s
Secret does not realize all of the expected benefits of the
spin-off;
- general economic conditions,
inflation, consumer confidence, consumer spending patterns and
market disruptions including pandemics or significant health
hazards, severe weather conditions, natural disasters, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the novel coronavirus (COVID-19)
global pandemic has had and is expected to continue to have an
adverse effect on our business and results of operations;
- the seasonality of our
business;
- divestitures or other dispositions
and related operations and contingent liabilities from such
businesses;
- difficulties arising from turnover
in company leadership or other key positions;
- our ability to attract, develop and
retain qualified associates and manage labor-related costs;
- the dependence on mall traffic and
the availability of suitable store locations on appropriate
terms;
- our ability to grow through new
store openings and existing store remodels and expansions;
- our ability to successfully operate
and expand internationally and related risks;
- our independent franchise, license
and wholesale partners;
- our direct channel businesses;
- our ability to protect our
reputation and our brand images;
- our ability to attract customers
with marketing, advertising and promotional programs;
- our ability to maintain, enforce
and protect our trade names, trademarks and patents;
- the highly competitive nature of
the retail industry and the segments in which we operate;
- consumer acceptance of our products
and our ability to manage the life cycle of our brands, keep up
with fashion trends, develop new merchandise and launch new product
lines successfully;
- our ability to source, distribute
and sell goods and materials on a global basis, including risks
related to:
- political instability,
environmental hazards or natural disasters;
- significant health hazards or
pandemics, which could result in closed factories, reduced
workforces, scarcity of raw materials, and scrutiny or embargoing
of goods produced in infected areas;
- duties, taxes and other
charges;
- legal and regulatory matters;
- volatility in currency exchange
rates;
- local business practices and
political issues;
- delays or disruptions in shipping
and transportation and related pricing impacts;
- disruption due to labor disputes;
and
- changing expectations regarding
product safety due to new legislation;
- our geographic concentration of
vendor and distribution facilities in central Ohio;
- fluctuations in foreign currency
exchange rates;
- the ability of our vendors to
deliver products in a timely manner, meet quality standards and
comply with applicable laws and regulations;
- fluctuations in product input
costs, including those caused by inflation;
- our ability to adequately protect
our assets from loss and theft;
- fluctuations in energy costs,
including those caused by inflation;
- increases in the costs of mailing,
paper, printing or other order fulfillment logistics;
- claims arising from our
self-insurance;
- our and our third-party service
providers' ability to implement and maintain information technology
systems and to protect associated data;
- our ability to maintain the
security of customer, associate, third-party and company
information;
- stock price volatility;
- our ability to pay dividends and
related effects;
- shareholder activism matters;
- our ability to maintain our credit
rating;
- our ability to service or refinance
our debt and maintain compliance with our restrictive
covenants;
- our ability to comply with laws,
regulations and technology platform rules or other obligations
related to data privacy and security;
- our ability to comply with
regulatory requirements;
- legal and compliance matters;
and
- tax, trade and other regulatory
matters.
We are not under any obligation and do not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this press release to
reflect circumstances existing after the date of this press release
or to reflect the occurrence of future events even if experience or
future events make it clear that any expected results expressed or
implied by those forward-looking statements will not be realized.
More information on potential factors that could affect Victoria’s
Secret results is included in Victoria’s Secret Registration
Statement on Form 10 and the second and third quarters of 2021
quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission.
For further information, please contact:
Victoria’s Secret & Co.: |
|
|
Investor Relations: |
Media Relations: |
Jason Ware |
Brooke Wilson |
investorrelations@victoria.com |
communications@victoria.com |
|
|
Regina Miracle International (Holdings)
Limited: |
|
|
Investor Relations: |
Media Enquiries: |
Jennifer Au |
Strategic Financial Relations Limited |
ir@reginamiracle.com |
Iris Lee / Shelly Cheng |
|
sprg_rm@sprg.com.hk |
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