In China Lingerie giant Victoria’s Secret has announced the fulfillment of a joint venture with Regina Miracle International in regards to its company-owned business.
According to the agreement Regina Miracle owns 49 percent of the lingerie company’s China-based operations, including its Victoria’s Secret stores and online business, and Victoria’s Secret will own 51 percent.
As per Victoria’s Secret, it had received 45 million dollars in cash from Regina Miracle “as consideration for its investment in the joint venture”.
Regarding this Martin Waters, CEO of Victoria’s Secret, said, “He was ‘confident this partnership will accelerate the company’s growth opportunity in China, ‘by leveraging Regina Miracle’s merchandising and market knowledge as well as establishing a closer proximity to its growing market base in the region.”
Besides this collaboration was an important step for Victoria’s Secret and completes the reformatting of their international business to be exclusively a franchise or partner-based model, and supports both online and store growth at a fast pace and more profitably, he added.
Their 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.
Again, based on its financial review of its China business and terms of the agreement, it does not anticipate the transaction to have a material impact on previously communicated sales and income.