Losses widen at Victoria Beckham, but are profits ahead?
today Dec 17, 2018
Victoria Beckham’s fashion label continues to be loss-making despite its huge appeal, but the business expects to break even in the medium term.
The designer brand said sales grew by an impressive 17% to £42.5 million last year, with growth across all segments including its core and secondary lines as well as accessories and eyewear.
But losses widened by £2m to £10.2m in 2017, after reporting losses of £8.4m in 2016 and £4.6m the year before that. It said this was a result of an ongoing investment in infrastructure and talent, as well as a growing focus on growth markets such as Asia and the US.
The womenswear brand, founded by the ex-Spice Girl in 2008, received a £30m investment from NEO Investment Partners to expand its digital operations and retail presence in November last year. The deal valued the firm at £100m, according to reports.
Since then, Victoria Beckham has left New York Fashion Week for London, unveiled a redesigned website and expanded its distribution capabilities. Additionally, Ralph Toledano, president of the Fédération de la Haute Couture et de la Mode, has come on board as chairman of the business.
Paolo Riva, who was appointed chief executive in June, said: "We will continue to invest in growth markets such as the US and Asia whilst also ensuring we have the right strategy to ensure profitability over the medium term.
“I look forward to working with Victoria and team to steer the brand to the next phase.”
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