Victoria’s Secret & Co. Announces Acquisition of Minority Interest in Frankies Bikinis

REYNOLDSBURG, Ohio, March 25, 2022 (GLOBE NEWSWIRE) — Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”) (NYSE: VSCO) today announced its acquisition of a minority interest in Frankies Bikinis, LLC (“Frankies Bikinis”), a women-founded and women-led beachwear and lifestyle brand located in Venice, California.

Frankies Bikinis was founded in 2012 by then 17-year-old Francesca Aiello and her mother, Mimi Aiello. The brand is widely known and recognized for its innovative, inclusive, and trend-setting aesthetic and laid-back Malibu vibe. Founder and Creative Director Francesca Aiello said, “Victoria’s Secret and Frankies Bikinis are true heritage brands in my eyes; companies that women tie unforgettable memories to, whether that be a first purchase from the brand or a memory of a time wearing it. I have such respect for the transformation that Victoria’s Secret has made over the past few years specifically with diversity and inclusivity, and I believe that together we can continue to bring a new wave of fashion into the swimwear industry for all women of all shapes, all sizes, and all backgrounds. With Victoria’s Secret beside us, Frankies Bikinis will continue to deliver our signature collections that encourage customers to explore their personal style and create looks unique to themselves that make them feel their most confident.”

Martin Waters, Victoria’s Secret CEO, commented “We are excited to be partnering with Francesca and the team at Frankies Bikinis.   She has created an aspirational beachwear brand and trend leader in the swimwear category, with room to grow and extend into new categories and attract new customers in the direct-to-consumer channel. Our investment in Frankies Bikinis is a continuation of our efforts to expand partnerships with culturally relevant brands founded by women entrepreneurs.”

The Company invested $18 million for a minority interest and does not anticipate that this investment will have a material impact on the previously communicated first quarter 2022 outlook.  

Kegler Brown Hill & Ritter served as legal advisor for Victoria’s Secret. The Sage Group served as exclusive financial advisor to Frankies Bikinis and Ritholz Levy Fields served as legal advisor.

About Victoria’s Secret
Victoria’s Secret is the world’s largest intimates specialty retailer offering a wide assortment of modern, fashion-inspired collections including signature bras, panties, lingerie, casual sleepwear, athleisure and swim, as well as award-winning prestige fragrances and body care. With nearly 1,400 retail stores worldwide and a predominately female workforce of more than 30,000, Victoria’s Secret boasts the largest team of specialty trained bra fit experts worldwide. Victoria’s Secret is committed to inspiring women around the world with products and experiences that uplift and champion them and their journey while creating lifelong relationships and advocating for positive change.

About Frankies Bikinis
Frankies Bikinis is a global online destination for fashion-forward beachwear inspired by Malibu and made in Los Angeles and around the World. Known for high-end fabrics, fashion forward shapes, and cheeky bottoms, our bikinis look great on everybody. Since the company’s inception, Francesca Aiello has evolved the brand into a beach lifestyle brand, expanding product offerings to include ready-to-wear clothing and beauty. Frankies Bikinis designs can be found in better retailers worldwide including Victoria’s Secret, Revolve, Intermix, Free People, Kith, and Browns with the biggest assortment available at frankiesbikinis.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

We caution that any forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995) contained in this Annual Report on Form 10-K or made by the Company, our management, or our spokespeople involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future operating results, the implementation and impact of our strategic plans, and our ability to meet environmental, social, and governance goals. Words such as “estimate,” “commit,” “target,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, could affect our financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements:

• the spin-off from our Former Parent may not be tax-free for U.S. federal income tax purposes;
• a loss of synergies from separating the businesses that could negatively impact our balance sheet, profit margins or earnings;
• we may not realize all of the expected benefits of the spin-off;
• general economic conditions, inflation, consumer confidence, consumer spending patterns and market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
• the novel coronavirus (COVID-19) global pandemic has had and may continue to have an adverse effect on our business and results of operations;
• the seasonality of our business;
• difficulties arising from turnover in company leadership or other key positions;
• our ability to attract, develop and retain qualified associates and manage labor-related costs;
• our dependence on mall traffic and the availability of suitable store locations on appropriate terms;
• our ability to grow through new store openings and existing store remodels;
• our ability to successfully operate and expand internationally and related risks;
• our independent franchise, license, wholesale, and joint venture partners;
• our direct channel business;
• our ability to protect our reputation and the image of our brands;
• our ability to attract customers with marketing, advertising and promotional programs;
• our ability to maintain, enforce and protect our trade names, trademarks and patents;
• the highly competitive nature of the retail industry and the segments in which we operate;
• consumer acceptance of our products and our ability to manage the life cycle of our brands, keep up with fashion trends, develop new merchandise and launch new product lines successfully;
• our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
  • political instability, environmental hazards or natural disasters;
  • significant health hazards or pandemics, which could result in closed factories, reduced workforces, scarcity of raw materials, and scrutiny or embargoing of goods produced in impacted areas;
  • duties, taxes and other charges;
  • legal and regulatory matters;
  • volatility in currency exchange rates;
  • local business practices and political issues;
  • delays or disruptions in shipping and transportation and related pricing impacts;
  • disruption due to labor disputes; and
  • changing expectations regarding product safety due to new legislation;
• our geographic concentration of vendor and distribution facilities in central Ohio and Southeast Asia;
• the ability of our vendors to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
• fluctuations in freight, product input and energy costs, including those caused by inflation;
• our ability to adequately protect our assets from loss and theft;
• claims arising from our self-insurance;
• our and our third-party service providers’ ability to implement and maintain information technology systems and to protect associated data and system availability;
• our ability to maintain the security of customer, associate, third-party and company information;
• stock price volatility;
• shareholder activism matters;
• our ability to maintain our credit rating;
• our ability to service or refinance our debt and maintain compliance with our restrictive covenants;
• our ability to comply with laws, regulations and technology platform rules or other obligations related to data privacy and security;
• our ability to comply with regulatory requirements;
• legal and compliance matters; and
• tax, trade and other regulatory matters.

We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. More information on potential factors that could affect Victoria’s Secret results is included in “Item 1A. Risk Factors” in our 2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission.

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