Victoria Beckham's luxury label saw a 16% sales drop last year to £35m as wholesale customers reduced their order sizes. This in turn led to operating losses widening by 18% to £11.7m.
The label, which was founded in 2008 as a small collection of dresses, has yet to turn a profit but the business received £30m of investment from Neo Investment Partners in 2017 which set about implementing changes including cutting staff and introducing a new management team.
Former Chloé CEO Ralph Toledano arrived as chairman in March 2018 and Marie LeBlanc de Reynies was promoted to the role of chief executive last month, replacing Paolo Riva, the former DVF CEO, who left for personal reasons in July after just a year in the role.
The business has recently expanded into beauty first looking a make-up line and is now moving into skincare. Beckham also has a sportswear tie-up with global giant Reebok.
The performance was in line with shareholder expectations after “cutting costs, focusing on its digital channels and refining the product to more closely reflect Victoria Beckham’s aesthetics and values”, the business said in the newly released Companies House accounts.
It said wholesale revenues grew by double digits in the UK, but “current challenges affecting department store retailers” resulted in a decline in international markets.
Sales have increased in certain segments of the business while losses have “significantly reduced” in 2019, the company said.
It said it expects to become profitable in the fourth quarter of the year and has an increased wholesale order book for 2020.