Victoria Beckham Revenues Rise 17% as Losses Widen in Fiscal 2017
LONDON — Revenues at Victoria Beckham Holdings were up 17 percent to 42.5 million pounds in fiscal 2017, with operating losses rising to 10.2 million pounds from 8.2 million pounds in the previous year.
This week, the company is due to file its annual profit and loss account on Companies House, the official register of U.K. businesses, and has lifted the veil on some of the figures it plans to report.
VBH said against a difficult trading environment in 2018, it has been investing for future growth and building its senior leadership team, hiring Paolo Riva as chief executive officer and Ralph Toledano as chairman. Shareholders said they are committed to reducing the 2017 loss and expect to break even in the medium term.
The company said 2017 revenue grew across its core categories, including the main ready-to-wear label Victoria Beckham, its sister collection Victoria, Victoria Beckham and accessories and eyewear, both online and in-store.
In 2017, Victoria Beckham launched a limited-edition designer range for Target Corp., with 150 styles selling out within hours. The company also released a second makeup collection with the Estée Lauder Cos. Inc. in September 2017. In November, the brand signed a long-term license partnership with Reebok, reflecting Victoria’s lifestyle ambitions and bringing the brand to a wider global audience.
As reported last December, the business raised 30 million pounds from NEO Investment Partners. As well as driving growth, part of the long-term strategy with the new shareholders will involve a rationalization of costs in order to return the company to profitability.
In September 2018, Victoria Beckham Ltd. marked its 10-year anniversary with its first London Fashion Week show launching the spring 2019 collection. It also announced a long-term global licensing deal for its eyewear category with Marchon.
“I have been excited by what I have seen at Victoria Beckham Ltd. since joining the company. It has a powerful, unique brand with a great team and great international potential,” said Riva. “We will continue to invest in growth markets such as the U.S. and Asia, while ensuring we have the right strategy to ensure profitability over the medium term.”
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