Stella McCartney has released its financial results for the year ending December 2021, showcasing a 14% rise in revenues, reaching £32.5 million. However, due to the implementation of a transformation program since 2020, it is difficult to compare these figures to previous years, as there have been changes in the way revenue is recognized in certain circumstances. The growth in revenue was primarily driven by a £12.2 million increase in profit split income from group undertakings, compared to £2.1 million the previous year.
Excluding transactions with fellow group companies, sales amounted to £16.1 million, decreasing from £23.8 million in the previous year. Physical store sales experienced a positive growth of 26%, amounting to £4.97 million. On the other hand, sales through the company’s own webstore decreased by 78%, totaling £2.3 million, as a result of changes in the operating model. E-commerce revenue is now recognized as part of Stella McCartney Italia SRL.
The company reported a loss before tax of £32.7 million, which is higher than the loss of £31.4 million reported in the previous year. The net loss for the year also increased to £32.7 million, compared to a net loss of £30.4 million in 2020.
Apart from undergoing a company transformation, Stella McCartney has witnessed several other changes in 2021. The brand introduced the Frayme bag as part of its autumn 21 collection and collaborated with renowned Japanese artist Yoshitomo Nara, contributing to an increased media presence. The company has also reinforced its commitment to sustainability and actively participated in the COP 26 conference. In addition, Stella McCartney has played a role in the development of the new fungi-based material called Mylo.
As part of the company’s restructuring, digital operations have been brought in-house, with revenue management now belonging to Stella McCartney Italia SRL. Additionally, the brand’s kidswear has transitioned to a licensing model for the spring 22 collection in partnership with Simonetta Spa.
Despite the challenges encountered, Stella McCartney remains fully dedicated to its reinvention and has strong financial backing from committed shareholders, led by McCartney herself. In 2019, McCartney entered into a partnership with LVMH, the owner of luxury brands such as Dior and Louis Vuitton, while still retaining control of her company. Previously, she ended her partnership with former backer Kering.
