Victoria’s Secret Sells 49 Percent of China Business in Joint Venture

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.

“I am delighted to announce this partnership with Regina Miracle, who has been a valued merchandise supplier partner for more than twenty years,” said Victoria’s Secret CEO Martin Waters in a statement.

He said he expects the partnership to “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”.

‘Promising China market’

The transaction is expected to close in the first quarter of fiscal 2022.

Victoria’s Secret said it doesn’t expect the deal to have a “material impact” on its operating income and earnings per share guidance for the fourth quarter of fiscal 2021.

YY Hung, the chair, CEO and executive director of Regina Miracle, said: “We are honoured and excited to be elevating our long-standing partnership with Victoria’s Secret through the formation of this joint venture in the promising China market.

“We are confident that our highly complementary strengths - Regina Miracle’s industry-leading innovation capabilities and market foresight as an innovative design manufacturer, and Victoria’s Secret’s undisputed brand leadership, retailing and marketing expertise - will perfectly position this partnership in capturing the growth opportunities in China.”

The news comes after Victoria’s Secret completed its separation from Bath & Body Works in the summer, becoming a newly independent public company.

In Victoria’s Secret’s most recent trading update, for the third quarter ended October 30, the company reported net revenue of 1.4 billion dollars, up 7 percent compared to a year earlier, but still 9 percent below pre-pandemic 2019 levels.

Its net income came in at 75.2 million dollars, down from 143.4 million dollars a year earlier.

Savage x Fenty secures $125 Million In Funding as it Opens First Store

Savage X Fenty, the inclusive lingerie brand founded by pop star Rihanna, has reportedly secured 125 million dollars in fresh funding.

It comes via a Series C funding round led by Neuberger Berman, along with participation from previous investors L Catterton, Avenir, Sunley House Capital, Advent International, and Jay Z’s Marcy Venture Partners, Forbes reports.

New investors include LionTree, Abu Dhabi Growth Fund (ADG) and Multiply Group.

It brings the total venture capital funding raised by Savage X Fenty to 310 million dollars, following a 115 million dollar Series B round in February.

Savage X Fenty was launched in 2018 as a joint venture between Rhianna and Fabletics owner TechStyle Fashion Group.

Physical store debut

The brand, which holds an annual star-studded runway show presented through Amazon Prime, announced earlier this month plans to take its first foray into physical retail, with the first store - in Las Vegas - opening this week.

In an Instagram post, Rhianna revealed the other four locations: LA, Houston, Philadelphia and Washington DC.

Also this month, the brand’s co-president and chief merchandising Christiane Pendarvis, told Bloomberg that “retail is an important part of our growth strategy”, due to the need for customers to test the products’ fit and comfort.

Pendarvis said that following the US openings, store openings in Europe could follow at a later date.

Hermès Names 2022 Beauty Creative Director

Gregory Pyrpylis has been tapped by Hermès Beauty to be their new creative director. He will report to Agnès de Villers, president of Hermès Parfum and Beauté, and he will work under the brand’s artist director, Pierre-Alexis Dumas.

In 2020, Hermès expanded their beauty division beyond perfumes by adding cosmetics including lipstick, powders, and nail polish. The brand continues to prove its strength and perseverance, even throughout the COVID-19 pandemic. An Hermès store in Guangzhou took in 2.7 million dollars in one Saturday after China began reopening from the first round of lockdowns.

In Q3 of 2021, Hermès reported that revenue was up 31 percent. Last month, the company also announced they would join Euro Stoxx 50, one of Europe’s main equity benchmarks.

Kanye West Hires Homeless For Next Fashion Show

Kanye West hopes to support the homeless with his next Yeezy fashion show.

The rapper plans to enlist homeless people to model the clothing from his new collaboration with the Skid Row Fashion Week brand in an upcoming presentation, TMZ reported Thursday. The initiative would aim to provide jobs with the Skid Row company for homeless people in Los Angeles.

A representative for West, 44, did not immediately respond to a request for comment.

The plan began when West met with Skid Row Fashion Week founder David Sabastian this month and agreed to work together on an upcoming clothing line, Sebastian told TMZ.

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Both men’s companies would also support the homeless population by donating proceeds from the fashion event, according to the report.