Vivienne Westwood, a luxury fashion brand, has successfully rebounded from the challenges of the pandemic with impressive sales and profit growth. Despite facing lockdown periods and the overall impact of the global health crisis, the brand managed to increase its revenue to £66.2 million, a significant jump from £42.1 million in the previous year. Gross profit also rose by a notable 81% to £40.4 million, while pre-tax profit soared to £19.3 million from £3.9 million. Net profit saw a remarkable surge, skyrocketing from £2.8 million the previous year to £15.2 million.
The reopening of physical stores played a crucial role in the brand’s success, with sales rising by an impressive 56%. Additionally, Vivienne Westwood experienced a substantial increase in e-commerce sales, which grew by 62%. The brand also witnessed a 62% rise in wholesale compared to the previous year. Despite these positive results, the company acknowledges that wider retail conditions are still putting pressure on margins. In response, Vivienne Westwood has been reviewing its pricing strategy to improve gross profit margins, a policy that will continue to be implemented. The brand has also made the decision to bring its e-commerce business in-house, a process that is expected to be completed by March of this year. This strategic move is anticipated to further enhance its margins.
Investing in its website is a priority for the company, as it has become its fastest-growing channel. Vivienne Westwood aims to effectively convey its brand message and enhance the customer journey through the website. The company is dedicated to adhering to founder Vivienne Westwood’s motto of “Buy less, choose well, make it last.” This means focusing on improving the quality of its products and minimizing its environmental footprint. Vivienne Westwood plans to use its brand voice as a platform to raise awareness about the environmental impact of over-consumption. The brand is actively working on sourcing materials and components with a lower impact on the environment. Currently, over 90% of its non-blended virgin cotton jersey is made from certified organic yarns. Moreover, Vivienne Westwood is part of the Canopy Style initiative, which is committed to using only FSC certified viscose. The company has also made its retail packaging 100% plastic-free and is working towards eliminating all single-use virgin plastic from transit packaging, among other green initiatives.
Despite the recent loss of its founder Vivienne Westwood and the appointment of her longtime friend Jeff Banks as a director of the business, the company remains steadfast in its commitment to fighting climate change and promoting sustainability within the fashion industry. By maintaining its dedication to quality, environmental consciousness, and the values established by its founder, Vivienne Westwood is well-positioned for continued success in the post-pandemic era.
Useful links:
1. Official Vivienne Westwood Website
2. Canopy Style Initiative
