Although the company has recorded a loss every year since its inception in 2008, performance has been improving in recent years, with narrowing loss margins.
Victoria Beckham Holdings Ltd, the company owned by one of the ex-Spice Girls, has reported its latest financial results made up to 31 December 2023 – and highlighted rising sales and reduced losses with the group close to operating back in the green.
The fashion business recorded a loss before tax of £2.9m (€3.45m) in 2023, down from £3.1m (€3.69m) in the previous year, according to Financial Times.
Close advertising
However, sales still jumped 52% to £89.1m (€105.95m), up from £58.8m (€69.92m) in the previous year, mainly because of a robust performance at the company’s Mayfair store in central London, especially following the brand venturing into beauty and leather goods. Sales carried out through wholesalers also increased.
Online sales were also significantly boosted by perfume collections, with belts also being the fastest-growing category, driven by new lines. One of the most popular products in 2023 was a midi dress selling for £850 (€1110.73).
Who is putting the money into Victoria Beckham’s company?
The cash investment, which is worth approximately £6.9m (€8.2m), will be invested across Victoria Beckham’s fashion and beauty divisions and will be provided by her husband David Beckham, herself, and Neo Investment Partners, which is a private equity firm. The company is also part-owned by XIX Management.
Out of the new £6.9m (€8.20m) investment, £3.9m (€4.64m) has gone towards increasing Victoria Beckham Beauty’s inventory levels, whereas £3m (€3.57m) has been used for working capital purposes for the fashion division of the business.
The label has made a loss every year since it was launched in 2008, despite receiving a few cash injections over the years, which have been used to pay off debt and support growth. However, performance seems to be picking up with narrowing loss margins in the last few years.
