- Victoria's Secret & Co (NYSE:VSCO) has formed a joint venture (JV) with Regina Miracle International (Holdings) Limited to operate all its stores and the related online business in China.
- Victoria's Secret will receive $45 million in cash from Regina Miracle as consideration for the investment in the JV.
- Under the agreement, Victoria's Secret will own 51% of the JV, with Regina Miracle owning the remaining 49%.
- The company expects the JV to occur in the first quarter of FY22.
- "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," said CEO Martin Waters.
- Victoria's Secret does not anticipate the proposed transaction to have a material impact on the previously affirmed operating income and EPS guidance for Q4.
- Price Action: VSCO shares are trading higher by 0.51% at $54.74 in premarket on the last check Tuesday.
