Victoria Beckham’s latest financial results filing paints a much more positive picture for her fashion brand than initially reported. While earlier accounts focused on the ongoing losses, the newly filed figures for 2021 reveal signs of growth and expansion.
According to the accounts for Victoria Beckham Holdings Ltd, revenue for the 12 months ending in 2021 increased by an impressive 13% to £40.9 million. This represents a significant turnaround compared to the 6% drop in revenue the previous year.
This improvement can be attributed to the strict cost management and the successful implementation of a new business model in the Victoria Beckham Fashion business during the fourth quarter of 2020. These strategies led to a reduction in costs as a percentage of sales, narrowing the operating losses from £6.8 million to £3.9 million. Additionally, the gross margin rose from 61% to 68%, thanks to more efficient supply chain management, a focus on direct-to-consumer channels, and the adoption of the new business model.
The positive momentum continued as the company’s results improved for the second consecutive year, with EBITDA losses shrinking from £5.2 million in 2020 to just £2 million in 2021. Furthermore, the net loss for the year decreased to £5.8 million, a significant improvement from the £8.5 million loss in the previous year.
A key factor in this success was the full brand repositioning undertaken by Victoria Beckham in the first half of the year. By merging the main line and the younger ‘Victoria’ brand into a cohesive line, the company achieved double-digit growth in three consecutive wholesale fashion campaigns. Additionally, the launch of Victoria Beckham Beauty in October 2019 contributed to revenue through its makeup and skincare products. The brand expanded its operations by opening a warehouse in the UK, partnering with New York department store Bergdorf Goodman, and establishing storefronts in Australia and Canada to tap into high-performing markets.
The positive trend continued into 2022, with the company experiencing double-digit growth across all channels. Despite worldwide supply chain challenges, Victoria Beckham successfully adapted its logistics and sourcing models, ensuring stable price points despite longer lead times. Moreover, the Fashion business expanded its presence in Europe and the Middle East while introducing new product categories, including leather goods and the VB Body line.
Victoria Beckham Beauty also saw growth by expanding its offerings in skincare and makeup, while maintaining a successful collaboration with Augustinus Bader. However, sustaining this profitable growth required a cash injection of £2 million for stock investment since the end of the year.
Overall, Victoria Beckham’s full results filing provides evidence of positive progress for the brand. The improved financial performance, ongoing expansion, and successful brand repositioning all contribute to a promising future for Victoria Beckham in both the fashion and beauty industries.
Relevant links:
1. To learn more about Victoria Beckham’s fashion brand, visit their official website here.
2. To explore the beauty products offered by Victoria Beckham Beauty, check out their website here.
