Victoria’s Secret & Co. Announces Acquisition of Minority Interest in Frankies Bikinis
March 25 2022 - 8:30AM
Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”)
(NYSE: VSCO) today announced its acquisition of a minority interest
in Frankies Bikinis, LLC (“Frankies Bikinis”), a women-founded and
women-led beachwear and lifestyle brand located in Venice,
California.
Frankies Bikinis was founded in 2012 by then
17-year-old Francesca Aiello and her mother, Mimi Aiello. The brand
is widely known and recognized for its innovative, inclusive, and
trend-setting aesthetic and laid-back Malibu vibe. Founder and
Creative Director Francesca Aiello said, “Victoria’s Secret and
Frankies Bikinis are true heritage brands in my eyes; companies
that women tie unforgettable memories to, whether that be a first
purchase from the brand or a memory of a time wearing it. I have
such respect for the transformation that Victoria’s Secret has made
over the past few years specifically with diversity and
inclusivity, and I believe that together we can continue to bring a
new wave of fashion into the swimwear industry for all women of all
shapes, all sizes, and all backgrounds. With Victoria’s Secret
beside us, Frankies Bikinis will continue to deliver our signature
collections that encourage customers to explore their personal
style and create looks unique to themselves that make them feel
their most confident.”
Martin Waters, Victoria’s Secret CEO, commented
“We are excited to be partnering with Francesca and the team at
Frankies Bikinis. She has created an aspirational
beachwear brand and trend leader in the swimwear category, with
room to grow and extend into new categories and attract new
customers in the direct-to-consumer channel. Our investment in
Frankies Bikinis is a continuation of our efforts to expand
partnerships with culturally relevant brands founded by women
entrepreneurs.”
The Company invested $18 million for a minority
interest and does not anticipate that this investment will have a
material impact on the previously communicated first quarter 2022
outlook.
Kegler Brown Hill & Ritter served as legal
advisor for Victoria’s Secret. The Sage Group served as exclusive
financial advisor to Frankies Bikinis and Ritholz Levy Fields
served as legal advisor.
About Victoria’s
SecretVictoria’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 30,000, 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 Frankies BikinisFrankies
Bikinis is a global online destination for fashion-forward
beachwear inspired by Malibu and made in Los Angeles and around the
World. Known for high-end fabrics, fashion forward shapes, and
cheeky bottoms, our bikinis look great on everybody. Since the
company’s inception, Francesca Aiello has evolved the brand into a
beach lifestyle brand, expanding product offerings to include
ready-to-wear clothing and beauty. Frankies Bikinis designs can be
found in better retailers worldwide including Victoria's Secret,
Revolve, Intermix, Free People, Kith, and Browns with the biggest
assortment available at frankiesbikinis.com.
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 U.S. Private Securities Litigation Reform Act of
1995) contained in this Annual Report on Form 10-K or made by the
Company, our management, or our spokespeople 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.
Forward-looking statements include, without limitation, statements
regarding our future operating results, the implementation and
impact of our strategic plans, and our ability to meet
environmental, social, and governance goals. Words such as
“estimate,” “commit,” “target,” “goal,” “project,” “plan,”
“believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,”
“planned,” “potential” and any similar expressions may identify
forward-looking statements. Risks associated with the following
factors, among others, could affect our financial performance and
cause actual results to differ materially from those expressed or
implied in any forward-looking statements:
- the spin-off from our Former Parent may
not be tax-free for U.S. federal income tax purposes;
- a loss of synergies from separating the
businesses that could negatively impact our balance sheet, profit
margins or earnings;
- we may 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 may continue to have an adverse effect on our
business and results of operations;
- the seasonality of our business;
- 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;
- our 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;
- our ability to successfully operate and
expand internationally and related risks;
- our independent franchise, license,
wholesale, and joint venture partners;
- our direct channel business;
- our ability to protect our reputation
and the image of our brands;
- 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 impacted 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 and Southeast
Asia;
- the ability of our vendors to deliver
products in a timely manner, meet quality standards and comply with
applicable laws and regulations;
- fluctuations in freight, product input
and energy costs, including those caused by inflation;
- our ability to adequately protect our
assets from loss and theft;
- 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 and system
availability;
- our ability to maintain the security of
customer, associate, third-party and company information;
- stock price volatility;
- 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 “Item 1A. Risk
Factors” in our 2021 Annual Report on Form 10-K as filed with the
Securities and Exchange Commission.
For further information, please contact:
Victoria’s Secret & Co.: |
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|
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Investor Relations: |
Media Relations: |
Jason Ware |
Brooke Wilson |
investorrelations@victoria.com |
communications@victoria.com |
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