Beckham's fashion label loses again

Continued turmoil for Victoria Beckham fashion

4th December 2019

Victoria Beckham's fashion brand has made a tenth consecutive annual loss. It blames a weak wholesale market and a slowing demand for designer fashion.

The 2018 accounts for Victoria Beckham Limited report a £12.3m loss, continuing a run of losses since its launch in 2008. Its annual report painted a mixed picture. Double figure increases in UK wholesale revenues contrasted with falling demand in international markets and a weak department store segment. This led to a 16 per cent drop in sales.

Concern for the company has led Victoria to explicitly state that it was "not a vanity project." In the Financial Times in March, she stated that she wanted the brand to have a long future. She said to achieve that ambition, "I need to break even, and then I need to be profitable."

Chairman Ralph Tolendo said the results were "in line with expectations." Growth in clothing and accessories sales had levelled off. The accounts stated that the business was optimistic after restructuring. Cost cutting, a focus on digital channels and a refined product offering "more closely reflect Victoria Beckham's aesthetics and values."

Mrs Beckham controls the business with her husband and former Manchester United star David Beckham, via their company Beckham Brand Holdings.

Losses at Mrs Beckham's label pushed Beckham Brand Holdings into loss for the first time. It lost £1.6m in 2018, following a net profit of £12.3m in the previous year.

But it's not all bad news: Victoria and David were ranked 372 on this year's Sunday Times Rich List with a combined wealth of £355 million and were named among Britain's 50 biggest taxpayers in The Sunday Times Tax List.