Vivienne Westwood Limited, a renowned fashion label, faced a challenging year in 2022 with the unfortunate passing of its founder. However, the company’s recently released financial accounts for the 12-month period ending December 2022 showcased its remarkable growth and strength in the industry.
The company saw substantial progress across its various business divisions, which encompass four clothing labels, leather goods, jewelry, and a range of soft accessories and homewares. Impressively, its turnover increased by 53% compared to the previous year, resulting in a corresponding 53% rise in gross profit. The company achieved revenue of £101.3 million and a gross profit of £61.9 million, indicating significant growth in its operations.
Furthermore, the company witnessed a surge in operating profit and pre-tax profit, jumping from £19.8 million to £38.4 million. Net profit also experienced substantial growth, soaring from £15.2 million to £30.89 million. Moreover, Vivienne Westwood’s cash flow from operations increased from £6.9 million to £16.9 million. The company’s physical store sales saw a remarkable boost of 65% in comparison to the previous year, while its e-commerce platform observed a 39% increase in sales.
In 2022, the brand embarked on the significant task of transitioning its e-commerce operations in-house, successfully completing it in September 2023. This strategic move is anticipated to enhance the overall efficiency and effectiveness of the company’s operations going forward. Additionally, the wholesale department experienced a notable 80% year-on-year rise in sales.
While the gross profit margin remained steady at 61%, Vivienne Westwood acknowledged the continued pressure on margins due to the challenging retail environment. To tackle this issue, the brand has initiated a review of its pricing strategies to improve the gross profit margin, a measure that it intends to implement and refine.
Vivienne Westwood maintains a strong appeal among its diverse customer base, and its primary focus is on enhancing its existing stores and streamlining its portfolio of product lines to fortify its brand position. The company is determined to establish a more robust presence in emerging markets such as China and the US, while also seeking to expand its market share in Europe, specifically in countries like France, Italy, and Germany, as well as Asia.
Environmental sustainability is a top priority for Vivienne Westwood. The company is dedicated to sourcing materials and components with a lower environmental impact. It currently utilizes over 90% of non-blended virgin cotton jersey made from certified organic yarns in its collections and aims to further increase this percentage. As part of the Canopy Style initiative, Vivienne Westwood pledged to use only FSC certified viscose starting in 2022. While the brand has not fully achieved this goal, it has made significant progress, with more than 95% of non-blended viscose used in its collections currently being FSC certified.
Moreover, Vivienne Westwood has implemented various measures to reduce plastic waste and promote sustainability. The company’s retail packaging is now entirely plastic-free, and it actively strives to eliminate all single-use virgin plastic from its transit packaging. Additionally, the brand has introduced several other eco-focused initiatives.
In conclusion, the financial results of Vivienne Westwood Limited for 2022 illustrate a period of growth and resilience for the company. With the successful completion of its e-commerce transition and its unwavering commitment to sustainable practices, the brand is positioned for continued success in the fashion industry.
Useful links:
1. Vivienne Westwood Official Website
2. Forest Stewardship Council
