Victoria’s Secret China Achieves Turnaround with 40% Revenue Growth to HK$1.88 Billion in Latest Annual Report by Regina Miracle

6月 28, 2024

On June 26, after the market closed, Hong Kong-based lingerie and sports product manufacturer Regina Miracle (HK: 2199) announced its full-year results for the fiscal year ending March 31, 2024. Affected by macroeconomic uncertainties and weak consumer sentiment, revenue decreased by 10.9% year-on-year to HK$7.02 billion, while net profit attributable to shareholders dropped by 62.6% year-on-year to HK$143 million.

Founded in 1998, Regina Miracle operates primarily through an IDM business model (Innovative Design Manufacturer), designing and manufacturing lingerie and sports products for clients. Its major clients include international brands such as Victoria’s Secret, Uniqlo, Under Armour, Nike, and Adidas.

Regina Miracle’s business is divided into five segments: intimate wear, sports products, consumer electronics accessories, bra cups and other molded products, and footwear.

According to the financial report, the intimate wear segment includes bras, loungewear, panties, shapewear, and swimwear. This segment’s revenue declined by 6.9% year-on-year to HK$4.12 billion, accounting for 58.7% of the group’s revenue. The sports products segment includes sports bras, leggings, shorts, and activewear. This segment’s revenue decreased by 5.1% year-on-year to HK$2.31 billion, making up 32.9% of the group’s revenue.


By customer destination, the United States was the largest market, with revenue from U.S. customers amounting to HK$3.24 billion, accounting for 46.2% of the group’s revenue. The Chinese Mainland was the second-largest market, with revenue from Chinese Mainland customers reaching HK$1.38 billion, representing 19.7% of the group’s revenue. Europe was the third-largest market, with revenue from European customers totaling HK$836 million, accounting for 11.9% of the group’s revenue.

In January 2022, Regina Miracle announced the formation of a joint venture with U.S. lingerie brand Victoria’s Secret (VS). Victoria’s Secret holds a 51% stake in the joint venture, while Regina Miracle owns the remaining 49%. The joint venture is responsible for operating all Victoria’s Secret stores and related e-commerce businesses in China, including the design, development, manufacturing, marketing, and sales of lingerie, loungewear, and personal care and beauty products under Victoria’s Secret trademarks.

Leveraging its deep understanding of Chinese consumers and agile supply chain, Victoria’s Secret China’s brand positioning and differentiated products keep up with current fashion trends. Despite the overall downturn in the Chinese consumer market, it maintained growth against the trend. Victoria’s Secret China’s revenue in the fiscal year 2024 reached approximately HK$1.88 billion, up 40% year-on-year, with a net profit of about HK$85.4 million, achieving a turnaround. Additionally, Victoria’s Secret China has become a major brand partner of the group in the fiscal year 2024, significantly contributing to the group’s IDM business revenue.

“The Chinese market is of significant importance to Regina Miracle, just as it is to all our brand partners seeking growth. The development momentum of our joint venture with Victoria’s Secret & Co. in China over the past year has positively impacted our domestic market business and injected new vitality. This experience provides valuable insights for us to explore the potential of the Chinese market with more international and domestic brands,” the group added.

| Source: Official financial report

| Image Credit: Official website

| Editor: LeZhi