Bad news for Becks as her fashion label suffers £12.3m loss
Written by News on 27/11/2019
Victoria Beckham’s fashion label suffered losses of £12.3m last year after demand waned for the former Spice Girl’s high-end clothes.
The ex-pop star’s company, Victoria Beckham Ltd, said losses grew 20% for the year leading up to December 2018 as demand “plateaued”.
The company, which has not made a profit since it was formed in 2008, has had a fall in sales due to weaker wholesale demand.
Ralph Toledando, chairman of the business, said sales of its clothing and accessories stagnated during 2018 after years of growth.
Mr Toledando told the trade title Business of Fashion: “The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible.
“I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”
The company is controlled by Beckham and her former England footballer husband David, through their company Beckham Brand Holdings.
The performance was in line with shareholder expectations after “cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham’s aesthetics and values”, the business said in the newly released Companies House accounts.
It said wholesale revenues grew by double digits in the UK, but “current challenges affecting department store retailers” resulted in a decline in international markets.
The company said sales have increased in certain segments of the business while losses have “significantly reduced” in 2019.
It said it expects to become profitable in the fourth quarter of the year and has an increased wholesale order book for 2020.
(c) Sky News 2019: Bad news for Becks as her fashion label suffers £12.3m loss
