Victoria's Secret & Co. Announces the Completion of the Joint Venture Agreement With Regina Miracle International (Holdings) Limited for the Existing Business in China
April 06 2022 - 9:50AM
Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”)
(NYSE: VSCO) today announced the successful completion of the joint
venture (“JV”) 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 JV to operate all Victoria’s Secret stores and the related online
business in China. Under the terms of the agreement, Victoria’s
Secret owns 51 percent of the JV and Regina Miracle owns the
remaining 49 percent. The Company received $45 million in cash from
Regina Miracle as consideration for its investment in the JV.
Martin Waters, Victoria’s Secret CEO, commented,
“I am excited about the successful completion of our JV agreement
with our long-standing merchandise supplier partner Regina Miracle.
I am confident this partnership will accelerate our growth
opportunity in China by leveraging Regina Miracle’s merchandising
and market knowledge, and closer proximity to a rapidly growing
potential customer base. This collaboration was an important step
for Victoria’s Secret and completes the reformatting of our
International business to be exclusively a franchise or
partner-based model, and supports both online and store growth at a
faster pace and more profitably. We believe our business is
underpenetrated internationally and double-digit sales and profit
growth is a realistic opportunity, both in the near-term and over a
long-term time horizon.”
YY Hung, Chairman, CEO & Executive Director
of Regina Miracle said, “The successful closing of the joint
venture agreement between Regina Miracle and Victoria’s Secret
marks an important milestone in our long-standing partnership.
Through the formation of this partnership, we are pairing Regina
Miracle’s innovation capabilities and market foresights as an
Innovative Design Manufacturer with Victoria’s Secret’s undisputed
innovation and brand leadership, retailing and marketing expertise.
We are confident that by leveraging our highly complementary
strengths, the business will be best positioned to cater to the
sophisticated needs of the Chinese consumers and hence capture the
growth opportunities in China.”
Based on the Company’s financial review of its
China business and the terms of the partnership agreement agreed
upon by both parties, the Company does not anticipate this proposed
transaction to have a material impact on the previously
communicated sales, operating income and earnings per share
guidance for the first quarter of fiscal 2022.
Dentons Europe LLP served as legal advisor for
Victoria’s Secret. King & Wood Mallesons served as legal
advisor to Regina Miracle.
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 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 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 U.S. Private Securities Litigation Reform Act of
1995) contained in this press release 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,” “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 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 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.
Except as may be required by law, we assume no
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 our results is included in
“Item 1A. Risk Factors” in our 2021 Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 18,
2022.
For further information, please contact:
Victoria's Secret & Co.: |
|
|
|
|
|
Investor
Relations:Jason Wareinvestorrelations@victoria.com |
|
Media Relations:Brooke
Wilsoncommunications@victoria.com |
|
|
|
Regina Miracle Holdings Ltd.: |
|
|
|
|
|
Investor
Relations:Jennifer Auir@reginamiracle.com |
|
Media Enquiries:Strategic Financial Relations
LimitedIris Lee / Shelly Chengsprg_rm@sprg.com.hk |
Victoria's Secret (NYSE:VSCO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Victoria's Secret (NYSE:VSCO)
Historical Stock Chart
From Jul 2023 to Jul 2024