Victoria's Secret Forms JV With Regina Miracle For China Business

Victoria's Secret & Co 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.