REYNOLDSBURG, Ohio, April 06, 2022 (GLOBE NEWSWIRE) 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.