Victoria Beckham fashion label reports loss, but deficit shrinks
Victoria Beckham’s fashion label continues to be loss-making, but the losses are shrinking as sales rise, new accounts set to be filed at Companies House will show.
The 14-year-old company has made a loss for nine years and its accounts come with another going concern warning from its auditors about its future.
But there are few fears that the business will go under with its affluent owners — who include Victoria and David Beckham plus Neo Investment Partners — understood to be ready to support the company with further cash injections, although no specific commitment has been made on this front.
The loss for 2021 added up to £5.9 million — better than the £8.6 million deficit of the previous year — while sales rose a healthy 14% to £41 million.
The previous year had been dented by the pandemic with both its wholesale operation and its London flagship suffering.
CEO Marie Leblanc also said the latest result was helped by strong beauty sales as the business expanded in this key growth area. She added that the figures for 2022 will be stronger with the firm heavily focused on its “new chapter and… accelerating growth”.
A Companies House filing for DB Ventures also showed that Victoria Beckham’s highest-paid director received £2.1 million in the year, that person is believed to be David Beckham. Both David and Victoria Beckham received £6.3 million in dividends from the holding company.
The couple have very wide business interests and operate through several companies. Reports also said that Beckham Brand Holdings, which controls their business empire, saw net profits of £10.1 million in the year on revenues of £34.3 million. The figures for the previous year had been profits of £11.6 million on sales of £11.4 million, the wider profit figure due to investment income generated from partnerships.
David Beckham has huge global earning power, include his recent controversial deal to promote Qatar. Early in 2022, Authentic Brands Group struck a co-ownership deal for Beckham’s global brand and he became a shareholder of ABG.
He also has long-standing sponsorship deal with Adidas, Tudor watches and other brands.
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