Victoria Beckham’s self-titled fashion label endured losses of £10.2 million in 2017, even though sales of its accessories, clothing and eyewear raised the total revenue to £42.5 million.
The 44-year-old singer-turned-fashion designer – who launched her brand in 2008 – saw losses increase from £8.2 million, even though the luxury fashion line enjoyed higher sales in 2017 across its accessories, clothing and eyewear range raising the revenue to £42.5 million from £36.4 million.
The losses come despite her husband David Beckham giving Victoria Beckham Ltd a £8.5 million cash injection in 2016. As well as the filed losses as of the end of December 2016 the brand still owes David’s DB Ventures that money.
Documents filed by her brand insist that shareholders are “committed to reducing the loss and expect to break even in the medium term” and attributed the losses to the fact that Victoria Beckham Ltd has been “investing for future growth and building its senior leadership team”.
The expansion has been achieved with £30 million cash invested in the company last year by NEO Investment Partners, which now has a minority holding in VBL.
NEO was responsible for redesigning the fashion label’s website, sales distribution and stores.
Despite the company figures. the Spice Girl celebrated the brand’s 10th anniversary with her first show at London Fashion Week in September, and the star also experienced success with her capsule beauty collection with ‘Estee Lauder’ and her limited edition US collection with retailer, ‘Target’.
VBL also went through a major shake-up internally last year as the brand appointed fashion industry veteran, Ralph Toledo, 67 – who previously served as the chief executive of Chloe – as chairman of the company alongside former Diane von Furstenberg Chief Executive Paolo Riva who was made CEO of the self-titled label in September.
At the time, Riva said: “We will continue to invest in growth markets such as the US and Asia whilst also ensuring we have the right strategy to ensure profitability over the medium term.
“I look forward to working with Victoria and team to steer the brand to the next phase.”
The label trades from its iconic flagship store in Mayfair, London, their website and in Hong Kong via their 400 stockists in over 50 countries.