Victoria’s Secret sells stake in China business for $45 million
Victoria’s Secret & Co has sold 49 percent of its China business to Hong Kong-based lingerie company Regina Miracle for 45 million dollars in cash.
The two companies have formed a joint venture that aims to help Victoria’s Secret expand in the Chinese market.
Under the joint venture, Regina Miracle will operate all Victoria’s Secret stores and the related online business in China.
The transaction is expected to close in the first quarter of fiscal 2022.
“I am delighted to announce this partnership with Regina Miracle, who has been a valued merchandise supplier partner for more than 20 years,” Martin Waters, Victoria’s Secret Lingerie’s chief executive officer, said in a statement. “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 [joint venture] with Regina Miracle in China completes a multiyear 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.”
The news comes after Victoria’s Secret completed its separation from Bath & Body Works in the summer, becoming a newly independent public company.