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Losses widen by 24 percent at Victoria Beckham's fashion label

By Prachi Singh

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Business

While revenues at Victoria Beckham's luxury fashion label increased 17 percent to 42.5 million pounds (53.6 million dollars) in 2017 compared to 36.4 million pounds in the prior year, losses widened by 24 percent to 10.2 million pounds (12.8 million dollars) compared to 8.2 million pounds as it continued to invest in the business and build its talent base. However, the company said, “its shareholders are committed to reducing this loss and expect to break even in the medium term.”

Commenting on the results, newly appointed chief executive Paolo Riva said in a statement, “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.”

Victoria Beckham: Annual sales rise, losses widen

The luxury label attributed rise in revenues to increased sales across its core categories – the main line ready-to-wear ‘Victoria Beckham’, its sister ready-to-wear line ‘Victoria, Victoria Beckham’, accessories and eyewear, both online and in-store.

In December last year, Victoria Beckham raised 30 million pounds from NEO Investment Partners to help it enhance both its digital and physical retail presence, drive growth in core categories and launch into new categories and collaborations. The company added, along with driving growth, “part of the long-term strategy with the new shareholders will involve a rationalisation of costs in order to return the company to profitability.”

In March, the company roped in fashion industry veteran Ralph Toledano as chairman and later Paolo Riva as chief executive officer. As part of the renewed focus on the brand’s digital potential and direct-to-consumer ambitions, the Victoriabeckham.com website was redesigned in the year and the company also invested in new distribution capabilities and it now ships to over 120 countries.

With offices in London and New York, a flagship store in Mayfair and in central Hong Kong, and over 400 stockists in over 50 countries internationally.

Picture:Victoria Beckham website

Victoria Beckham