Stella McCartney‘s fashion house has plunged into an annual loss, newly published reports show. The brand went from a £9.1 million profit in 2017, to an £10.8 million loss during 2018, with lower sales and a costly reorganisation to blame.
The report indicates that one of the reasons for the loss came from the corporate reorganisation of the brand, which saw McCartney buy out luxury conglomerate Kering’s 50% stake. The label said 2018 had been “a year of transition”.
Despite the loss, Stella McCartney increased its staff numbers and brought in new computer systems so that it could handle back-office responsibilities, previously taken care of by Kering.
In July 2019, Stella McCartney entered into a partnership with LVMH, with McCartney retaining creative control and a majority of shares. LVMH will assist in the development of the business strategy and brand growth.
Sustainability has been a key focus for Stella McCartney in the last two years, launching the world’s first 100% recyclable hoodie with Adidas, creating the world’s first Biodegradable Stretch Denim, and putting sustainability at the heart of the their Summer 2020 collection campaign.