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Continued turmoil for Victoria Beckham fashion
4th December 2019
Victoria Beckham's fashion brand has reported another year of losses. It says the problem is a weak wholesale market. Demand for designer fashion is lower.
The company's 2018 accounts show a £12.3m loss. This continues 10 years of losses since it started in 2008. The report presented a mix of good news and bad. There was strong growth in UK income but international sales and department stores sales fell. Overall, this meant a 16 per cent drop in sales.
Many people are concerned about the company's future. Mrs Beckham later stated her company was 'not a vanity project' in an interview with the Financial Times. She wants the brand to have a long future, which, she said, means, "I need to break even, and then I need to be profitable."
Chairman Ralph Tolendo reported that the results were as expected, with slower growth in sales. Success will hopefully come from cost cutting, digital channels and a focus on products that "more closely reflect Victoria Beckham's aesthetics and values."
Mrs Beckham controls the business with her husband David Beckham, the former Manchester United star. It is owned by their company Beckham Brand Holdings.
Victoria Beckham Limited caused Beckham Brand Holdings to make a loss of £1.6m in 2018. This was its first loss. It reported net profits of £12.3m in 2017.
But the news is not all bad: Victoria and David are ranked 372 on this year's Sunday Times Rich List. Together they own £355 million and are one of Britain's top 50 taxpayers.
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