Victoria Beckham’s fashion business has turned a loss – again
Victoria Beckham’s fashion business turned another loss last year, after demand for its clothes “plateaued”.
The company, called Victoria Beckham Limited, has not made a profit since its 2008 launch. It reported a £12.3m loss last year, with sales slipping 16 per cent to £35m amid weaker wholesale demand.
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Chairman Ralph Toledano said clothing sales had flattened after growing in recent years.
“The performance was in line with expectations, so we were not surprised. Our goal is to reach profitability as soon as possible,” he told trade outlet Business of Fashion.
Beckham launched the label with a collection made up mainly of luxury dresses.
The company now sells fashion and accessories in more than 400 stores worldwide, with Victoria controlling the company alongside husband David.
The firm has received praise from the critics, but has struggled financially.
Beckham said this year that it was not her “vanity project,” but a brand that she hoped would last for decades.
“If I want this brand to still be here in 10, 20, 30, 40 years’ time, I need to break even, and then I need to be profitable,” she told the Financial Times in March.
“We’re on the right track to do that, but it’s not going to happen tomorrow.”
The company has taken steps to improve its financials in recent years. It has launched its own cosmetics range, struck a partnership with Reebok and lowered prices.
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But this was not enough to counteract a lessening of demand from wholesale customers last year.
Toledano said: “I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”